The Euro is consolidating above thick daily cloud, reinforced by Fibo 38.2% of 1.0878/1.1179 ascend, where strong two-day drop found footstep.
Tuesday’s nearly 0.5% fall marks the biggest one-day loss, with two long bearish daily candles (Mon/Tue) weighing.
Bears also closed marginally below 1.1073 higher base that generated initial signal of double-top pattern (1.1075/79).
Completion of reversal pattern requires close below 1.1064 (daily cloud top/Fibo support) to open targets at 1.1029/00 (Fibo 50% of 1.0878/1.1179/psychological).
Rising bearish momentum on daily chart and 5/10/20 DMA’s in bearish setup favor further downside.
Mild reaction on upbeat German factory orders (Sep 1.3% vs 0.1% f/c) signals strong bearish stance, as markets await release of German and EU composite/services PMI data.
Upticks are expected to provide better selling opportunities while capped by daily Tenkan-sen (1.1119), while break and close above would signal an end of corrective phase.
Res: 1.1100, 1.1119, 1.1140, 1.1162
Sup: 1.1064, 1.1041, 1.1029, 1.1000
