The Euro dipped below 1.0800 handle on Wednesday, in extension of Tuesday’s strong fall, as long bearish candle, formed previous day, continues to weigh. Repeated failure to clear 200SMA (currently at 1.0875) generated bearish signal for current weakness. Initial supports, 5 SMA’s at 1.0808 and 10SMA/4-hr cloud top at1.0787 are broken and pullback eyes next pivot at 1.0748 (Fibo 38.2% of 1.0493/1.0905 rally). Overall picture is bullish and correction is expected to ideally reverse above 1.0748 support. Otherwise, deeper correction could be expected on loss of 1.0748 Fibo 38.2% support, which would expose 1.0700 (50% retracement/daily Kijun-sen) and plethora of supports that lies below (20/55/30/100 SMA’s in 1.0696/1.0627 zone).
Res: 1.0825, 1.0855, 1.0875, 1.0905
Sup: 1.0776, 1.0748, 1.0700, 1.0670
