The Euro sits poised just above a downside breakout point on the charts and most of that negative bias is coming from the fear of a Greek inspired disaster ahead. The Greeks are threatening to secure debt from other sources like Russia and the US, which is a pipe dream given current economic and fiscal problems facing those suitors. On the other hand, financing from China might not be out of question as that would give the markets a way out of the EU crisis without crippling the global economy. The path of least resistance in the Euro is pointing downward and a temporary dip below 1.1250 appears to be in the cards. Aggressive traders should consider buying June Euro calls on coming weakness.
Technical Outlook: Momentum studies are trending higher from mid-range, which should support a move higher if resistance levels are penetrated. The market’s short-term trend is negative as the close remains below the 9-day moving average. The daily closing price reversal up is a positive indicator that could support higher prices. The market tilt is slightly negative with the close under the pivot. The next upside target is 114.1250. The next area of resistance is around 113.7400 and 114.1250, while 1st support hits today at 112.8600 and below there at 112.3650.