The Euro sits poised just above a downside breakout point on the charts this morning as evidence of slowing inside the Euro zone, ongoing geopolitical pressures and negative economic sentiment is very wide spread. While the Euro might avoid significant selling off an escalation in Ukraine tensions, the fear of awashout off that subject will be difficult to eliminate until the fate of the Russian convoy is known. However, afresh negative was seen overnight from reports of a.3% decline in a Euro zone June Industrial output resultovernight. Down trend channel resistance is seen in the September Euro up at 1.3402 but the odds of a decline tothe lowest level since last November look to be pretty high over the coming 3 trading sessions.
Technical Outlook: Daily stochastics are showing positive momentum from oversold levels, which shouldreinforce a move higher if near term resistance is taken out. The market’s short-term trend is negative as theclose remains below the 9-day moving average. The swing indicator gave a moderately negative reading with theclose below the 1st support number. The next upside objective is 134.1600. The next area of resistance is around133.9400 and 134.1600, while 1st support hits today at 133.4400 and below there at 133.1600.