The Euro bounces from lows at 1.1350 (Mon/today) posted after upside rejection at strong 1.1440 resistance zone (daily cloud base/Fibo 38.2% of 1.1815/1.1215 descend/falling 55SMA). Tuesday’s action ended in bearish daily candle with long upper shadow which signaled bulls were trapped and generated negative signal. Fresh recovery attempts are underpinned by rising momentum and Monday’s failure to clearly break below a cluster of daily MA’s at 1.1360 zone, as the single currency remains so far resilient on fresh turbulence over Brexit. Scope for renewed attack at 1.1440 zone pivots exists, however, bulls may show hesitation here again as thickening daily cloud weighs. The pair needs clear break above these barriers (55SMA/cloud base/Fibo resistance) to generate stronger bullish signal, but this looks unlikely for now. Extended congestion between 200WMA (1.1312) and Fibo 38.2% barrier (1.1444) is seen as more likely scenario, with negative sentiment on France and Italy, expected to keep the downside vulnerable. Sustained break below 200WMA, which so far resisted several attacks, would bring bears fully in play and risk test of pivotal support at 1.1186 (Fibo 61.8% of 1.0340/1.2555 ascend).
Res: 1.1400, 1.1420, 1.1444, 1.1507
Sup: 1.1350, 1.1312, 1.1305, 1.1267
