The Euro is higher in early Wednesday’s trading after Tuesday’s probe through strong supports at 1.1720/10 (Fibo 38.2% of 1.1118/1.2092 rally/weekly 200SMA) failed to close below. Long-legged daily candle on Tuesday signaled indecision at key supports which also limited downside attempts last week. The pair is expected to hold within narrow consolidation before renewed attempts lower. Bearish setup on daily chart supports scenario with formation of 10/55SMA and 20/30SMA bear-crosses on Tuesday seen as bearish signal. The Euro showed little reaction to Catalonia’s leader’s plan to declare independence in Asian trading on Wednesday, but may come under increased pressure if tensions rise. Falling 10SMA/4-hr cloud base offer initial resistance at 1.1810 which is expected to ideally cap recovery action, guarding more significant daily cloud top/Tenkan-sen at 1.1850. EU Services PMI and Retail Sales are key events in the European session for the single currency. Services PMI is expected to stay unchanged at 55.6 in September. Retail Sales are forecasted to rise by 0.3% in August after falling by 0.3% in July, while annualized number is expected to stay unchanged at 2.6%.
Res: 1.1780, 1.1810, 1.1850, 1.1883
Sup: 1.1720, 1.1710, 1.1696, 1.1662
