The Euro remains constructive in early Thursday’s trading but so far unable clear initial barrier at 1.1246 (falling 10SMA/Fibo 23.6% of 1.1448/1.1183 fall) that keeps risk of recovery stall in play. Tuesday’s hammer candle is supportive for recovery but long upper shadow of Wednesday’s daily candle, following recovery rejection weighs and offsets partially positive signal. Rising bearish momentum and MA’s in bearish configuration add to negative signals. Break above 10SMA would signal recovery extension which would require confirmation on break above 1.1284 (20SMA/Fibo 38.2%). The minutes of ECB’s last month meeting are the key event for Euro today and more dovish than expected tone would depress the single currency.
Res: 1.1246, 1.1257, 1.1284, 1.1300
Sup: 1.1231, 1.1220, 1.1200, 1.1186
