In spite of today’s major Euro zone data points, the Euro has also stayed within a very tight trading rang egoing into this morning’s session. Euro zone CPI down-ticked to a paltry 0.4% year-on-year rate, but that negativeimpact was somewhat offset by a drop in the Euro zone Unemployment Rate to 11.5%. With an unresolvedUkraine/Russian situation still shadowing the market, the Euro is likely to need the help of sluggish US data thismorning in order to gain back some portion of lost ground. A rebound to near-term resistance at 1.3418 mayoccur after the US data window, but the Euro is likely to remain on the defensive until tomorrow’s Euro zone PMInumbers and US jobs data are out of the way.
Technical Outlook: Momentum studies are still bearish but are now at oversold levels and will tend tosupport reversal action if it occurs. The market’s short-term trend is negative as the close remains below the 9-day moving average. It is a slightly negative indicator that the close was under the swing pivot. The next downsideobjective is now at 133.4700. More downside action may be limited by the RSI under 20 putting the market inextremely oversold territory. The next area of resistance is around 134.2100 and 134.4300, while 1st support hitstoday at 133.7300 and below there at 133.4700.