The Euro was mostly sidelined in Asia on Wednesday, but holding in daily cloud, following Tuesday’s bounce and close above cloud base. Renewed concerns about trade war offered mild support, while today’s comments from ECB’s policymaker Villeroy that the first ECB rate rise could be expected earliest in summer 2019, could have negative impact, but double-Doji in past two days warns of strong indecision. Falling 55SMA (currently at 1.1758) continues to cap for the third straight day and sustained break higher is needed to generate bullish signal and turn near-term focus higher. Daily cloud base (1.1713) holds today’s action for now and marks initial support, while stronger bearish signal could be expected on break below Tuesday’s low at 1.1690, reinforced by 10/30SMA bull-cross. Mixed configuration of daily MA’s supports sideways mode for now, but south-heading slow stochastic and momentum maintain pressure. Look for direction signal on break of either side.
Res: 1.1746, 1.1758, 1.1790, 1.1840
Sup: 1.1713, 1.1690, 1.1658, 1.1658
