The Euro ticks higher in European trading on Wednesday, supported by rising momentum and daily stochastic reversing from oversold territory. Tuesday’s long-legged Doji suggests that the bear-leg from 1.1263 (13 May spike high/strong upside rejection at falling 55SMA) might be running out of steam. Recovery should be ideally capped at 1.1190 zone (Tuesday’s high/falling 10SMA) to keep bears intact for renewed attack at 1.1147 Fibo support (76.4% of 1.1111/1.1264) and possible extension towards key support at 1.1111 (2019 low, posted on 26 Apr). Conversely, break and close above 10SMA would put bears on hold, but lift above falling 30SMA (1.1208) is needed to confirm reversal. FOMC minutes are due later today and would provide fresh signals, with neutral cb’s stance to increase pressure on Euro, while dovish steer would provide relief on weaker dollar.
Res: 1.1173, 1.1190, 1.1208, 1.1217
Sup: 1.1142, 1.1134, 1.1111, 1.1075
