A fresh new low in the Euro this morning is the result of news that the latest QE effort won’t be derailed by legal barriers. However, lower oil prices, deflationary vibes from sharply lower copper prices and signs that Russia is jawboning the Ukraine for bad debt again would seem to leave a wet blanket hanging over the Euro zone going forward. In fact, the Euro is likely to fall toward the 2005 monthly chart consolidation lows down at 1.1665 but even that level might not be the ultimate stopping point for the Euro.
Technical Outlook: The market made a new contract low on the break. The stochastics indicators are rising from oversold levels, which is bullish and should support higher prices. The market’s close below the 9-day moving average is an indication the short-term trend remains negative. The swing indicator gave a moderately negative reading with the close below the 1st support number. The near-term upside objective is at 119.0375. The 9-day RSI under 20 suggests the market is extremely oversold. The next area of resistance is around 118.3449 and 119.0375, while 1st support hits today at 117.2750 and below there at 116.8975.