The Euro lost traction and fell to fresh three-week low at 1.1662 after repeated rejection at 1.1800 resistance zone and was additionally pressured by better than expected US data. Also, dovish tone from the ECB minutes suggests that the central bank may stand aside in September’s meeting and further delay signaling its QE program tapering. With bearish near-term technicals and dailies building up bearish momentum, near-term risk remains shifted lower. Violation of key supports at 1.1680 zone could be seen as strong bearish signal, however, close below is needed to complete failure swing pattern on daily chart and confirm scenario for extension towards next strong support at 1.1607 (Fibo 38.2% of 1.1188/1.1910 upleg). Bearish outside day is forming on daily chart and could add pressure on the pair’s near-term action. Converging 10/20SMA’s are attempting to form bear-cross at 1.1760 which now acts as strong resistance.
Res: 1.1737; 1.1760; 1.1789; 1.1838
Sup: 1.1685; 1.1662; 1.1640; 1.1607
