The Euro has seemingly found some consolidation support on the charts just above 1.29 and some of that support is the result of the lingering cease-fire in the Ukraine and some might be the result of the potential for thehighly regarded Dollar to be tainted by US governmental fighting and or slack US claims data. A minor pressureon the Euro this morning was seen from German inflation data that failed to discount the threat of deflation in theEuro zone. Aggressive traders might consider purchasing the Euro with a tight stop down at 1.2880 into the USclaims release, as a jump in claims could be justification for the beginning of a corrective bounce in the Euro. Onthe other hand, the trend is down and some traders might see US geopolitical headwinds as yet another reasonfor the Euro zone to fall back into a recession.
Technical Outlook: Daily momentum studies are on the rise from low levels and should accelerate a movehigher on a push through the 1st swing resistance. The market’s close below the 9-day moving average is anindication the short-term trend remains negative. The downside closing price reversal on the daily chart issomewhat negative. It is a slightly negative indicator that the close was lower than the pivot swing number. Thenext upside objective is 129.9750. The market is approaching oversold levels on an RSI reading under 30. Thenext area of resistance is around 129.5100 and 129.9750, while 1st support hits today at 128.7100 and belowthere at 128.3750.