The Euro bounced from session low at 1.1339, posted after downbeat French PMI data, underpinned by unexpected jump in German Services PMI (Jan 53.1 vs 52.2 f/c) that offset negative impact from weaker than expected German Manufacturing PMI data (Jan 49.9 vs 51.4 f/c).
Larger bears are taking a breather above cracked key support at 1.1350 (Fibo 61.8% of 1.1215/1.1569 / daily cloud base), awaiting for fresh signal which could be generated from today’s ECB policy meeting.
Clear break below 1.1350 would signal continuation of larger downtrend from 2019 high at 1.1569 (10 Jan) towards targets at 1.1300 (Fibo 76.4% / psychological) and 1.1270 (14 Dec low).
The ECB is expected to keep interest rates unchanged and most of market participants expect the central bank to keep dovish stance and keep monetary policy accommodative, as inflation remains low and signs of slowdown in two biggest EU economies, Germany and France, would further undermine the single currency.
Res: 1.1378, 1.1400, 1.1417, 1.1454
Sup: 1.1350, 1.1336, 1.1300, 1.1270
