The Euro entered US session at the back foot, hitting daily low at 1.2345, in extension of weakness from the European trading, when German ZEW miss (Apr -8.2 vs -0.8 f/c, the lowest since November 2012) increased pressure on the single currency.
Probe above 1.24 barriers was so far short-lived, with return below cracked Fibo barrier at 1.2377, further weakening near-term structure.
Fresh easing pressures strong supports at 1.2330 zone (cluster of daily MA’s/daily cloud top) which is expected to hold and keep in play bulls on daily chart for fresh attempts higher.
The pair may hold in extended consolidation between cloud top and 1.2400 barrier before generating clearer direction signal.
Repeated close above 1.2377 (Fibo 61.8% of 1.2476/1.2215 bear-leg) is needed to generate fresh bullish signal for renewed probe above 1.2414 (session high / Fibo 76.4%) and final push towards key 1.2476 barrier (27 Mar high).
Bearish scenario would require break and close below daily cloud top (1.2327) to shift near-term focus lower for further retracement of 1.2215/1.2414 bull-leg.
Res: 1.2377; 1.2414; 1.2446; 1.2476
Sup: 1.2345; 1.2330; 1.2290; 1.2261
