The Euro stands in red in early Friday’s trading following strong upside rejection at trendline resistance (1.1295) on Thursday, that left another Doji candle, this time with long upper shadow.
Upbeat US NFP data provided short boost to the risk appetite, but fears from rising coronavirus cases soured the sentiment.
The third consecutive failure to close above cracked pivot at 1.1265 (Fibo 38.2% of 1.1422/1.1168 / 20DMA) weighs on near-term tone which is additionally weakened by rising negative momentum.
Extended sideways trading is moving between 20DMA and rising 30DMA (1.1214) which comes under pressure and break here would shift focus towards key supports at 1.1175/68 (Fibo 38.2% of 1.0774/1.1422 / 19 June trough).
Long shadows of weekly candles of past four weeks add to negative signals of bull-trap formation (above 200WMA).
The pair so far shows mild reaction to better than expected German / EU Services PMI numbers, with quiet trading expected today as America is shut for Independence Day holiday.
Res: 1.1249, 1.1265, 1.1284, 1.1302
Sup: 1.1224, 1.1214, 1.1184, 1.1168
