The Euro is showing some minor recovery action this morning as a reversal from a recent low provides some technical assistance. However, soft Euro zone factory order results, weaker global equities and more declines in oil prices would seem to suggest that the markets are poised to pick up right where they left off at the end of last week and that should leave the downward bias in place in the Euro. Overhead resistance is seen up at 1.2509 today and that trend line resistance falls down to 1.2497 on Tuesday.
Technical Outlook: The daily stochastics have crossed over down which is a bearish indication. Stochastics trending lower at midrange will tend to reinforce a move lower especially if support levels are taken out. The close below the 18-day moving average is an indication the intermediate-term trend has turned down. The market’s close below the 1st swing support number suggests a moderately negative setup for today. The next downside objective is now at 123.5925. The next area of resistance is around 124.8449 and 125.5325, while 1st support hits today at 123.8750 and below there at 123.5925.