The Euro is pressuring strong support at 1.0641 (Wednesday’s low/Fibo 38.2% of 1.0339/1.0827 rally/daily Kijun-sen), following double rejection at 1.0700 zone, where 20SMA repeatedly capped recovery attempts. As the dollar remains supported by yesterday’s announcement from US president Trump about ambitious tax reform play, the single currency is expected to remain under strong pressure in the near term. Firm break below 1.0641 pivot would generate strong bearish signal for fresh acceleration lower. Immediate support lies at 1.0603 (55SMA), ahead of near-term targets at 1.0550 /25 (daily cloud base/Fibo 61.8% retracement). Alternatively, sustained bounce above 20SMA (currently at 1.0706) would sideline immediate downside risk and re-expose falling 100SMA (currently at 1.0762) that so far capped recovery leg from 1.0339.
Res: 1.0666, 1.0706, 1.0730, 1.0762
Sup: 1.0619, 1.0603, 1.0583, 1.0550