The Euro stands at the back foot in early Tuesday’s trading, following strong upside rejection on Monday, which left daily candle with long upper shadow, but still holding above initial support at 1.1737 (daily cloud base) and keeping alive hopes of fresh upside attempts. Strong bullish momentum and daily MA’s (10, 20,30) in bullish setup are supportive while the price holds above pivotal supports at 1.1737/18 (daily cloud base / former high of 26 June / broken Fibo 61.8% of 1.1848/1.1508 fall). Bullish scenario on eventual close above falling 55SMA (1.1765) would open way for further extension of bull-leg from 1.1527 towards next key barrier at 1.1850 zone (former high of 14 June/Fibo 38.2% of 1.2413/1.1508 descend). Conversely, bearish signal could be expected on repeated close below falling 55SMA and sustained break below 1.1737/18 pivots, which would trigger further weakness towards converged MA’s at 1.1650/77 zone. German ZEW data are due today and eyed for fresh signals. Forecasts for July are below previous month’s figures and could have negative impact on Euro on weak numbers today.
Res: 1.1765, 1.1790, 1.1840, 1.1854
Sup: 1.1737, 1.1718, 1.1678, 1.1667
