The Euro tried to put together a rally overnight but talk of fresh QE and fear of renewed Russian tensionshas resulted in a reversal of sorts in the Euro currency. Lingering fears of a return to recession in Germany is noteasily discounted in the current environment and it might not take much in the way of positive US scheduled datalater this morning to rekindle pressure on the Euro. Near term downside targeting in the December Euro is seenat 1.2736 and then not until the 1.2711 level. In order for the Euro to forge an upside breakout above resistance of1.2850 probably requires distinctly disappointing US scheduled data and or fresh US Ebola infections.
Technical Outlook: Studies are showing positive momentum but are now in overbought territory, so somecaution is warranted. The close above the 9-day moving average is a positive short-term indicator for trend. Thedaily closing price reversal up is a positive indicator that could support higher prices. It is a mildly bullish indicatorthat the market closed over the pivot swing number. The near-term upside target is at 128.7900. The next area ofresistance is around 128.5000 and 128.7900, while 1st support hits today at 127.6400 and below there at127.0700.