German October Ifo readings this morning were discouraging for the Euro bulls but yet the Euro has managed to start out on a positive track this morning. As suggested in the Dollar coverage this morning thereseems to be a measure of support for the Euro and against the Dollar off the idea that the US Fed later this weekwill at least acknowledge the lack of inflation and growth, especially in the wake of the large October swoon inequities. With expectations for a slightly positive US pending home sales results later this morning, somemeasure of back and fill might be seen in the Euro after the early bid on the charts. The Commitments of TradersFutures and Options report as of October 21st for Euro showed Non-Commercial traders were net short 159,344contracts, an increase of 3,722 contracts. The Commercial traders were net long 209,969 contracts, an increaseof 3,268 contracts. The Non-reportable traders were net short 50,626 contracts, a decrease of 453 contracts.Non-Commercial and Non-reportable combined traders held a net short position of 209,970 contracts. Thisrepresents an increase of 3,269 contracts in the net short position held by these traders.
Technical Outlook: Stochastics trending lower at midrange will tend to reinforce a move lower especially ifsupport levels are taken out. The close below the 9-day moving average is a negative short-term indicator fortrend. The close over the pivot swing is a somewhat positive setup. The next downside objective is now at126.0900. The next area of resistance is around 127.0400 and 127.3300, while 1st support hits today at 126.4200and below there at 126.0900.