The Euro moves lower in early US trading on Friday as stronger than expected US PPI data inflated dollar. The pair repeatedly failed to close above strong 1.1254/85 resistance zone (100DMA/broken bull-trendline/converged 20/30DMA’s) that was cracked on Thu/Fri, but subsequent pullbacks marked strong rejections, confirming the strength of resistances. Thursday’s Doji with long upper shadow and today’s easing, suggest that short recovery off week’s low at 1.1193, might be over. Fresh weakness pressures supports at 1.1236 (55DMA) and thin daily cloud (1.1227/29) break of which is needed to confirm reversal scenario and re-focus lows at 1.1193/81. Very strong bearish momentum on daily chart supports the notion, however, overextended 14-d momentum and north-heading stochastic may slow bears.
Res: 1.1254; 1.1274; 1.1285; 1.1300
Sup: 1.1236; 1.1227; 1.1193; 1.1181
