The Euro stands at the back foot and moved lower after weaker than expected German PMI data and European figure coming in line with expectations.
Weak tone on stronger dollar extends on Wednesday, after previous day’s strong upside rejection at triangle’s upper boundary, which left bearish daily candle with long upper shadow.
Fresh weakness also cracked the base of daily cloud (1.1678) which marks key support, close below which would be bearish signal.
Weakening momentum and probes through a cluster of daily MA’s, are negative factors which could further influence the price.
Bigger picture shows the pair entrenched within 1.1850/1.1508 range for two months, with double monthly long-legged Dojis confirming neutral stance in the longer run.
Batch of US data due today, with key event, FOMC policy decision, is expected to be Euro’s key driver today.
Break of either side of narrowing range is needed for firmer direction signal.
Bearish scenario on sustained break below triangle support line (1.1633) would shift focus lower and expose supports at 1.1574 (19 July spike low) and key point at 1.1508 (21 June low).
Conversely, lift above triangle’s upper boundary would generate initial reversal signal.
Res: 1.1693, 1.1718, 1.1736, 1.1750
Sup: 1.1672, 1.1633, 1.1620, 1.1574
