The Euro ran out of steam and fell back to daily lows at 1.1700 and erased all gains of the day, as fresh dollar’s strength put the single currency under pressure.
Initial probe through triangle resistance at 1.1740 (session high was at 1.1745) proved to be short-lived, but positive momentum exists and keeps near-term bullish bias alive for now.
Dips need to find ground above daily cloud base (1.1678) with another close within the cloud, needed to maintain bullish stance.
On the other side, Italian GDP fell below expectations in Q2 and despite stronger than expected inflation numbers, could sour the sentiment together with IMF’s comments uncertain outlook about Greece’s long-term debt.
We look for constructive tone while the price holds within the cloud, while return below cloud base would weaken near-term structure.
Wednesday’s FOMC decision could be a catalyst for final and strong direction signal.
Res: 1.1745; 1.1762; 1.1790; 1.1848
Sup: 1.1700; 1.1678; 1.1648; 1.1627
