The Euro traded within narrow range in Asia, staying in directionless mode for the third straight day, as focus turns on tomorrow’s ECB meeting.
Tuesday’s action closed in green but strong upside rejection which left daily candle with long upper shadow, offset immediate positive signal.
The pair remains above daily cloud base which marks first pivotal support (currently at 1.1731), awaiting fresh signals from the ECB.
Sustained break below daily cloud and other key supports at 1.1672/69 (H&S neckline/06 Oct low/100SMA) would spark significant bearish acceleration and signal deeper correction of 1.0340/1.2092 Jan/Sep ascend).
Near-term action is capped by 20SMA (1.1778), with daily Tenkan-sen (1.1800) reinforcing resistance. Lift above 1.1800 is needed to ease immediate bearish pressure, while break of last week’s double top at 1.1858 would neutralize and generate bullish signal. German Ifo data are in immediate focus today (forecasted unchanged at 115.2 in Oct) and may underpin near-term action on better than expected reading.
Res: 1.1778, 1.1800, 1.1839, 1.1858
Sup: 1.1752, 1.1731, 1.1700, 1.1669
