The Euro hits new session high in early US session trading on Wednesday, on extension of bounce from daily low at 1.1730, posted in late Asian session, where thick rising 4-hr cloud contained dips.
The single currency rallied despite weaker than expected EU IP data (Apr -0.9% vs -0.5% f/c and 0.6% in Mar) and returned above 10SMA (1.1740) which was cracked on short-lived dip to 1.1730.
Break and close above 30SMA (1.1781) which capped upside attempts in past four days, is needed to provide relief and shift near-term focus higher.
More likely scenario sees Euro lower on hawkish Fed, with upticks seen as positioning.
Bearish scenario requires close below 1.1721/13 pivots (20SMA/Fibo 38.2% of 1.1509/1.1839), to generate fresh bearish signal which could be boosted by dovish ECB tomorrow, for extension towards 1.16 zone.
Res: 1.1781; 1.1809; 1.1839; 1.1850
Sup: 1.1730; 1.1713; 1.1674; 1.1652
