The Euro remains within tight range in early European trading and consolidating above Tuesday’s fresh three-week low at 1.1118.
Near-term outlook is bearish after strong fall in past two days and marginal close below former higher base at 1.1135, as bears dented next strong support at 1.1121(Fibo 38.2% of 1.0839/1.1295 upleg).
Profit-taking on larger uptrend and stronger dollar are seen as pair’s main drivers, with increased risk of deeper correction towards 1.1067/13 (Fibo 50% and 61.8% retracement of 1.0839/1.1295 upleg) seen on sustained break below of 1.1121/09 pivots.
Bear-cross of 10/20SMA’s maintains near-term bearish pressure, with falling 10SMA offering solid resistance at 1.1179 and guarding upper pivot at 1.1202, provided by 20SMA.
Res: 1.1138, 1.1165, 1.1179, 1.1202
Sup: 1.1121, 1.1109, 1.1067, 1.1013
