From a technical perspective zEuro is at or near important moving averages off the MONTHLY chart. I also note the current RSI is touching the trendline and will be watching for how this closes on the month. This is a momentum indicator and often times prior to a correction we see positive divergences between momentum and price, so do not assume a rising momentum indicator equals a rise in price.
Nearby areas to watch for on zEuro would be 1.22750 and 1.21250, with 1.19 lingering. If that fails then there are inflections at 1.14, 1.10 and 1.07 to name a few but I'd like to see how things unfold in the near-term.
On the weekly chart we see a similar situation with respect to RSI where it is sitting on the bottom trend line. Again, if we are to see a reversal I'd expect to see it come with a higher low in the RSI, anything else will likely just be a corrective phase with new lows down the road.
The daily RSI is a little more interesting in that it leads me to believe we could see lower momentum on zEuro before it could catch some relief. If it manages to hold the current lows some inflection points are 1.25, 1.275 and 1.30. Both 1.30 will be pretty stiff resistance with an outside chance of 1.33
Also keep in mind the record short-interest in the Euro, while fundamentally correct, might be a tad crowded down at these levels in such a short time.
