With a reduction in geopolitical headwinds from the Ukraine cease-fire deal we would have expected the Euro to have shown more short covering action. However, the Euro is held back by the derailment of the Greek debt deal at the last minute. We do think traders should make a fresh long term bet on the Euro through the June Euro 1.1850 calls as negative sentiment has become excessive and we sense an overall turn in the geopolitical winds.
Technical Outlook: Stochastics are at mid-range but trending higher, which should reinforce a move higher if resistance levels are taken out. A negative signal for trend short-term was given on a close under the 9-bar moving average. It is a slightly negative indicator that the close was under the swing pivot. The near-term upside target is at 113.6025. The next area of resistance is around 113.3149 and 113.6025, while 1st support hits today at 112.7850 and below there at 112.5425.