The Euro holds firm tone and probes again above cracked Fibo barrier at 1.1341 (38.2% of 1.1514/1.1234) after bulls failed to close above on Tuesday.
Fresh attempts higher remain capped by 20SMA (1.1362) for the second day and keep in play risk of recovery stall.
North-heading momentum and 5/10SMA bull-cross support, while plethora of daily MA’s (20,30,55,100) continues to weigh along with overbought stochastic and offsets positive signals.
Near-term action may hold in quiet mode ahead of today’s key event, release of minutes of FOMC Jan policy meeting, due later today.
Dovish tone could be expected from Fed as the central bank already sidelined any action in increasing interest rates in 2019, with weaker than expected US retail sales and IP data, released earlier this month, adding to concerns that the US economy would be able to continue to hold positive stance.
On the other side, the single currency showed mild reaction on negative CA data on Tuesday and would also look for fresh signals from series of EU members PMI data on Thursday.
Extended dips would be allowed down to 10SMA (1.1309) to keep bullish bias in play, while close below would generate fresh bearish signal.
Bullish scenario requires close above Fibo barrier at 1.1341 and break through 20SMA (1.1362) to signal further advance.
Res: 1.1362, 1.1374, 1.1382, 1.1397
Sup: 1.1331, 1.1309, 1.1275, 1.1249
