The Euro is consolidating above new five-week low at 1.1463 in early Thursday’s trading, following strong bearish acceleration on Wednesday, sparked by upbeat US private sector jobs data and Services sector showing the strongest activity since 1997. Strong data boosted expectations for surprise in US NFP data on Friday and keep the greenback well supported. Wednesday’s close below pivotal 1.15 support zone (Fibo 61.8% of 1.1300/1.1815 upleg/weekly 100SMA) was strong bearish signal for further weakness towards 1.1422 (Fibo 76.4%) and key supports at 1.1328/00 (weekly 200SMA / 15 Aug low) in extension. Slow stochastic on daily chart is moving sideways, deeply in oversold zone and suggesting that bears may take a breather, but so far without firmer signal. Consolidative / corrective action faces initial resistance in broken former strong support at 1.1500, with extended upticks to be capped by the base of thick weekly cloud (1.1562) to keep bears intact.
Res: 1.1500, 1.1526, 1.1562, 1.1593
Sup: 1.1463, 1.1422, 1.1394, 1.1328
