The Euro consolidates after strong fall on Tuesday which generated negative signals on close below daily cloud top / 20SMA (1.1433/20) but failed to clearly break below significant Fibo support at 1.1392 (50% retracement of 1.1215/1.1569 rally).
Indicators on daily chart also show mixed signals as momentum is rising but slow stochastic is heading south and MA’s are in mixed setup.
Fresh bears off 1.1569 high (10 Jan) need boost on break below 1.1392 pivot and 55SMA (1.1380) that would signal further weakness towards 1.1350 (Fibo 61.8%) and 1.1309 (3 Jan trough).
On the other side, sustained break above 1.1423/51 (20/10SMA’s) is needed to sideline existing downside risk and revive bullish bias.
Res: 1.1423, 1.1451, 1.1471, 1.1540
Sup: 1.1392, 1.1380, 1.1350, 1.1309
