The Euro eased in early Wednesday’s trading after comment from President Trump overnight that the US and China are close to reach a deal. Fresh optimism lifted dollar and erased all gains of pair’s brief recovery on Tuesday, shifting near-term focus towards key support zone at 1.1000/1.0989 (psychological support / Fibo 61.8% of 1.0878/1.1179 / 14 Nov low). Bears still face strong headwinds here as oversold daily stochastic and improving momentum reduce pressure for now. Lower volumes in pre-Thanksgiving holiday trading also contribute to scenario of extended narrow-range sideways trading which extends into fourth straight day. Break and close below 1.1000/1.0989 pivot (following false break on 14 Nov) would generate bearish signal for extension of the downtrend from 1.1179/75 double-top towards supports at 1.0949 (Fibo 76.4%) and 1.0940 (8 Nov trough). Conversely, initial bullish signal could be expected on firm break above bull-trendline (1.1020) and current range top (1.1032), with lift above daily cloud (which twists today and possibly being magnetic) to improve near-term structure. Break above daily Kijun-sen (1.1082) and 21 Nov high (1.1096) would signal reversal and shift focus higher.
Res: 1.1020, 1.1032, 1.1054, 1.1082
Sup: 1.1000, 1.0989, 1.0949, 1.0940