The Euro moved higher on Tuesday after bears stalled ahead of daily cloud base on Monday, but overall picture remains bearish.
Today’s bounce is seen as consolidation ahead fresh attack at cloud base, as barriers at 1.1777 (20SMA) and 1.1802 (Tenkan-sen) weigh on near-term action and expected to cap recovery attempts.
Sustained break below daily cloud base (1.1731) would expose next pivotal points at 1.1671/69 (neckline of daily H&S pattern and 16 Oct low), break of which would generate stronger bearish signal. Bearish daily studies support the notion.
PMI data from Germany / EU are in focus today with forecasts being slightly below previous releases, which could further soften the tone on release at/below forecasts.
Traders are eyeing Thursday’s ECB meeting for further signals
Res: 1.1777, 1.1802, 1.1839, 1.1851
Sup: 1.1731, 1.1725, 1.1669, 1.1612
