While the Euro is facing a distinct pattern of lower lows and lower highs on its charts, a quasi-doublebottom around 1.3586 level would seem to provide a fresh layer of support. With the Spanish economy posting its3rd consecutive quarterly growth reading this week and Spain one of the most troubled sectors of the EU thatseems to have discouraged sellers of the Euro. However, to throw off the downward motion on the chartsprobably requires more positive economic news than the improvement in Euro zone sentiment and inflationexpectations from earlier this week. For today support moves up to another quasi-double bottom low of 1.3614.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. The close below the 9-day moving average is a negative short-term indicatorfor trend. The swing indicator gave a moderately negative reading with the close below the 1st support number.The next downside target is now at 135.5475. The 9-day RSI under 30 indicates the market is approachingoversold levels. The next area of resistance is around 136.1850 and 136.5275, while 1st support hits today at135.6950 and below there at 135.5475.