The Euro has peaked out below recent consolidation support on its charts as outflows from Greek banks accelerates, Russia seems to be escalating its military presence inside Ukraine and all eyes turn toward an EU meeting on the Greek extension that is expected to start around 7:30 Eastern time today. Cushioning the Euro against more significant downside action this morning is evidence of an improving EU economy in the wake of an up-tick in the Euro zone Composite PMI which reached up to the highest level in 6 months. While the Euro zone may get beyond the severe turmoil threat from Greece, Ministers are suggesting they aren’t willing to pony up additional funds as requested by Greece. The path of least resistance is pointing downward and we expect at least a return to the Mid-February lows of 1.1275.
Technical Outlook: A crossover down in the daily stochastics is a bearish signal. Momentum studies trending lower at mid-range could accelerate a price break if support levels are broken. The close below the 9-day moving average is a negative short-term indicator for trend. The daily closing price reversal down puts the market on the defensive. It is a slightly negative indicator that the close was lower than the pivot swing number. The next downside objective is 112.9050. The next area of resistance is around 114.1500 and 114.8250, while 1st support
hits today at 113.1900 and below there at 112.9050.