The Euro is holding within narrow range in early Wednesday’s trading and consolidating fall of past two days that was so far contained by strong support at 1.1689 (09 Aug low).
Yesterday’s repeated strong rejection at 1.1689 suggests the pair might spend some time in consolidation mode, before establishing in fresh direction.
Broken 20SMA marks initial resistance at 1.1751 and caps today’s action for now, guarding south-turned 10SMA (1.1779). Break of these barriers would shift near-term bias higher and expose key n/t barrier at 1.1846 (11 Aug high).
Overall bullish structure keeps focus at the upside and eyes targets at 1.1910 and 1.2000 after correction, with stronger signs of bullish resumption while 1.1689 support holds. Further bullish acceleration could be expected on break above 20/10SMA pivots.
Otherwise, risk of deeper correction could be expected on firm break below 1.1689 that will complete Failure Swing pattern on daily chart and expose next strong support at 1.1607 (Fibo 38.2% of 1.1188/1.1910).
Eurozone Q2 GDP release is due today, with forecast unchanged from the first quarter (2.1% y/y, 0.6% q/q).
Res: 1.1779, 1.1800, 1.1838, 1.1846
Sup: 1.1723, 1.1689, 1.1640, 1.1607
