The Euro holds in red in early Wednesday’s trading and retests Tuesday’s low at 1.1129 after another strong upside rejection previous day and repeated close below 200DMA (1.1150).
This adds to risk of pullback as Friday’s candle with long upper shadow weighs and diminishing hopes of renewed attempt towards key 1.1200 resistance zone (1.1199 was Friday’s spike high and 1.1208 is Fibo 61.8% of 1.1412/1.0878).
Fading bullish momentum and south-heading stochastic and RSI on daily chart, support scenario.
Fresh bears eye first pivot at 1.1119 (sideways-moving daily Tenkan-sen) with risk of extension towards key levels at 1.1090 (daily Kijun-sen) and 1.1075 (daily cloud top).
German Ifo (Dec 95.5 f/c vs 95.0 prev) and EU CPI data (Nov y/y 1.0% f/c vs 0.7% prev) are key events of European session today and expected to provide fresh direction signals.
Res: 1.1150, 1.1174, 1.1200, 1.1208
Sup: 1.1129, 1.1119, 1.1090, 1.1075
