The Euro recovers from today’s drop, with minor impact from weak EU PMI numbers that add to concerns about contraction in the third quarter but lacking direction for the third quarter.
The single currency also failed to benefit more from ECB’s 0.5% rate hike (vs 0.25% forecast), though the ECB’s action keep the Euro inflated and preventing deeper fall for now, despite concerns about economic slowdown and darkened outlook.
Near-term action is moving between daily Tenkan-sen (1.0115) and Kijun-sen (1.0283) which mark pivotal points and break of either would signal fresh direction.
Traders await Fed’s decision next week, with initial euphoria about a jumbo 1% hike being cooled by some policymakers, keeping in play expected 0.75% that may disappoint those who expected more hawkish stance and possibly negatively influence the dollar.
Technical studies are mainly bearish, though formation of bullish engulfing pattern on weekly chart may offer fresh support to Euro
Res: 1.0283; 1.0330; 1.0361; 1.0400.
Sup: 1.0205; 1.0153; 1.0115; 1.0078.
