A tight coiling pattern in the Euro offers some hope that the situation in Greece will work out without Greece leaving the EU. Reports of negotiations between the newly elected administration and EU officials is reportedly expected to take 6 weeks and that combined with minimally positive Euro zone factory PMI readings for January, might serve to increase consolidation support on the charts around the 1.1281 level. The Commitments of Traders Futures and Options report as of January 27th for Euro showed Non-Commercial traders were net short 177,296 contracts, an increase of 806 contracts. The Commercial traders were net long 239,828 contracts, an increase of 5,673 contracts. The Non-reportable traders were net short 62,532 contracts, an increase of 4,867 contracts. Non-Commercial and Non-reportable combined traders held a net short position of 239,828 contracts. This represents an increase of 5,673 contracts in the net short position held by these traders.
Technical Outlook: The stochastics indicators are rising from oversold levels, which is bullish and should support higher prices. The market’s short-term trend is negative as the close remains below the 9-day moving average. It is a slightly negative indicator that the close was under the swing pivot. The next upside target is 113.9600. With a reading under 30, the 9-day RSI is approaching oversold levels. The next area of resistance is around 113.3800 and 113.9600, while 1st support hits today at 112.5200 and below there at 112.2400.