The Euro moved lower in late Asian/early European trading as dollar firmed on expectations the Fed would continue with rate hikes despite President Trump’s criticism. Repeated failure at daily cloud base and bearish close on Monday (red daily candle with long upper shadow) signal the upside attempts remain limited as thick daily cloud weighs heavily and continues to cap. Fresh easing probed below a cluster of daily MA’s (1.1676/60), focusing lower pivot at 1.1615 (triangle support/Fibo 61.8% of 1.1508/1.1790 upleg), break of which would generate fresh bearish signal. Weakening momentum supports the notion. Better than expected German Manufacturing PMI data (July 57.3 vs 55.5 f/c) provided relief, ahead of release of EU PMI data which are expected to ease in July, according to the forecasts (Manufacturing PMI 54.7 f/c vs 54.9 prev/Services PMI 55.0 f/c vs 55.2 prev). Weak numbers would add to negative tone and risk further easing, while upbeat figures would support and sideline existing downside risk.
Res: 1.1704, 1.1750, 1.1790, 1.1848
Sup: 1.1654, 1.1616, 1.1574, 1.1527
