The Euro edged lower in Asia / early Europe after Wednesday’s rally probed above 1.1800 again but was capped under Monday’s high at 1.1828. The price holds within 1.1.1731/1.1828 range for the fourth straight day, with the action being supported by daily Tenkan-sen (1.1750) and daily studies in bullish setup supportive for further advance through 1.1828/46 pivots. The price is holding above the upper boundary of bullish flag that was formed on daily chart and generated signal for bullish continuation. Broken flag’s upper resistance line now turned to solid support at 1.1770, followed by daily Tenkan-sen at 1.1750. Corrective easing should be ideally contained above these supports to keep near-term bulls in play. Increased downside risk could be expected on violation of Tenkan-sen support which would expose lower pivots at 1.1724/1.1694 (rising 30SMA / daily Kijun-sen. Jackson Hole meeting starts today with markets awaiting the speech ECB President Draghi, looking for firmer signals of tightening of the ECB’s policy and QE tapering. However, sources close to Mario Draghi said that he may not talk about these subjects in Jackson Hole symposium but focus on the theme of the meeting regarding global economy.
Res: 1.1823, 1.1828, 1.1846, 1.1889
Sup: 1.1770, 1.1740, 1.1724, 1.1708
