The CurrencyShares Euro $FXE is currently testing multiple layers of support at the 133.30-133.60 range.

Support layers include:

• 23.6% Fibonacci Retracement of the 2012-14 Rally

• 38.2% Fibonacci Retracement of the 2013-14 Rally

• Post-July 2012 up trendline

• 200-Week Simple Moving Average

Should that level fail to hold, the next major support area is around 130.50-131.00.

Incidentally, while the common perception is that a weakening of the Euro would be a positive for European equities, that has not been the case in recent years. The outperformance of much of Europe the past few years corresponds with the uptrend in the Euro since July 2012. A strong Euro has especially been positive for the PIIGS, partly in supporting their bonds. The recent Euro weakness has brought equity weakness as well, especially among PIIGS. So, be careful what you wish for, Euro-currency doves.