The Euro holds at familiar levels and within triangular directionless range, with negative signals growing after four consecutive failures to close above cracked pivot at 1.1780 (Fibo 38.2% of 1.2555/1.1300 descend).
Adding to negative signals is formation of diamond top pattern on daily chart which could result in pullback.
Break below pattern’s low (1.1724) and rising 10SMA (1.1714) would generate initial negative signals and would spark extension towards 1.1660 zone (converged 20/100SMA) which form bullish cross and expected to contain dips as overall picture is bullish.
Signals of deeper correction which would sideline bulls, could be expected on firm break below 1.1660 support zone.
Fed is expected to provide more clues about pair’s near-term direction as rate hike is widely expected, with more hawkish stance from the central bank to boost the greenback and increase risk of Euro’s deeper pullback.
Res: 1.1792, 1.1815, 1.1848, 1.1900
Sup: 1.1755, 1.1724, 1.1714, 1.1670
