The Euro is tracking lower to start today but one might think the currency will find some support from atempering of anxieties in the Ukraine and Iraq. In fact, one might have expected the Euro to have added to lastweek’s bounce in the wake of positive Chinese inflation news and upbeat economic talk flowing from Japan. Infact, with the non-reportable net short positioning in the Euro hitting a new record level of 49,750 contracts, onemight have expected a measure of technical short covering follow through this morning. Critical pivot pointsupport is seen at 1.3374 and then again at 1.3360. The Commitments of Traders Futures and Options report asof August 5th for Euro showed Non-Commercial traders were net short 133,027 contracts, an increase of 22,692contracts. The Commercial traders were net long 182,778 contracts, an increase of 25,562 contracts. The Nonreportabletraders were net short 49,750 contracts, an increase of 2,868 contracts. Non-Commercial and Nonreportablecombined traders held a net short position of 182,777 contracts. This represents an increase of 25,560contracts in the net short position held by these traders.
Technical Outlook: The stochastics indicators are rising from oversold levels, which is bullish and shouldsupport higher prices. The market’s short-term trend is positive on the close above the 9-day moving average.Market positioning is positive with the close over the 1st swing resistance. The next upside target is 134.9200.Consider buying pull-backs since daily studies are bullish. The next area of resistance is around 134.5900 and134.9200, while 1st support hits today at 133.6900 and below there at 133.1200.