The Euro is trading within narrow range in European session on Thursday, holding below psychological 1.10 barrier (also Wednesday’s high).
Negative impact from weaker than expected German Manufacturing PMI (May 36.8 vs 39.2 f/c) was partially offset by solid Services PMI figure and EU Manufacturing/Services PMI’s both beating forecast.
Bulls face strong headwinds from 1.1013/17 resistance zone (1 May high/200DMA) and risk of stall is evident on rising bearish momentum and overbought daily stochastic. Initial negative signal could be expected on close below 100DMA (1.0965), with extension below 55DMA (1.0924) to add pressure, while break below converged 10/20/30 DMA’s (1.0870) would bring bears fully in play. Conversely, lift and close above 200DMA would signal bullish continuation.
Res: 1.1000, 1.1014, 1.1065, 1.1087
Sup: 1.0965, 1.0924, 1.0902, 1.0870
