The Euro stands at the back foot on Wednesday and probes below last Friday’s low at 1.1618, which marks significant support.
Strong upside rejection on Tuesday after posting fresh two-year high at 1.1712 that left Doji daily candle with long upper shadow, generated initial negative signal, with single currency also being dragged lower by firmer dollar.
Reversal of daily RSI and slow stochastic from overbought zone generates additional bearish signal.
Dips may extend towards next solid support at 1.1570 zone (Fibo 23.6% of 1.1188/1.1712 upleg), reinforced by rising 10SMA which guards pivot at 1.1485 (Fibo 38.2% / rising 20SMA).
Firm break here would confirm reversal and trigger deeper correction.
The Euro is holding in larger uptrend and current easing is seen as correction before fresh push higher after initial attack at strong resistance zone between 1.1713 and 1.1735 failed.
Deeper correction would signal healthier uptrend with final break above 1.1713/35 pivots expected to spark stronger upside action.
The pair is awaiting comments from Fed later today for fresh direction signals.
Res: 1.1653, 1.1684, 1.1712, 1.1735
Sup: 1.1600, 1.1570, 1.1550, 1.1514
