The Euro is consolidating under pivotal barriers at 1.1880/85 (recovery highs / falling 20DMA) after the action in past two days repeated failed at these levels.
Strong China’s trade data, released earlier today, boost the risk sentiment, but prevailing dovish tone in ECB President Lagarde’s interview, published today and weaker German and French CPI figures offset the positive impact.
Traders await US inflation data (due today) for a fresh signal.
Near-term action generated initial positive signal on break and repeated close above 10DMA (1.1848), but confirmation of signal requires lift and close above 20DMA (1.1885) and Fibo 61.8% of 1.1975/1.1781 (1.1901).
Daily studies improved slightly but the lack of positive momentum is evident that keeps the downside vulnerable.
Look for a signal on the break of either pivot (10DMA or 20DMA).
Res: 1.1885, 1.1901, 1.1929, 1.1966.
Sup: 1.1848, 1.1824, 1.1806, 1.1781.
