The Euro stands at the back foot in early European trading on Wednesday after Tuesday’s rally which probed above trendline resistance was strongly rejected.
The second consecutive Doji candle was left on Tuesday, signaling strong indecision.
Stronger US dollar on optimistic tones from trade issue and uncertainty over Italy’s budget weigh on Euro, while dovish shift from Fed underpins.
German Services PMI came in line with expectations in Nov, while EU Services PMI beat forecast (Nov 53.4 vs 53.1 f/c) but still holds near two-year low and market showed no immediate reaction on data.
Pivotal supports lay at 1.1320/1.1295 zone (lows of last few sessions / trendline support) with sustained break here to confirm bearish bias and risk test of 1.1267 (28 Nov low) and possible extension towards key support at 1.1205 (12/13 Nov lows).
Bullish scenario requires break and close above trendline resistance (1.1380) and tops of 29/30 Nov at 1.1400, to signal further advance.
Res: 1.1348, 1.1358, 1.1380, 1.1400
Sup: 1.1320, 1.1305, 1.1295, 1.1267
