The Euro returned to familiar levels around 1.1200 after Wednesday’s attempt at 1.1300 zone target, driven by strong fall of dollar on disappointing US inflation data and subsequent pullback on FOMC rate hike that strengthened the greenback.
Underlying bull trend is still in play but repeated failures to close above 10SMA / daily Tenkan-sen (1.1231) could be seen as negative signal, as Wednesday’s daily candle with long upper shadow on strong upside rejection weighs.
Firm break below 20SMA (1.1217) which tracks the action in past couple of days and extension below last Friday’s low at 1.1166 is needed to generate stronger bearish signal and expose next pivotal support at 1.1109 (30 May trough/near Fibo 38.2% of 1.0820/1.1295 upleg).
Conversely, eventual close above 10 SMA/daily Tenkan-sen resistances would shift focus higher, however, sustained break above 1.1300 barrier is needed to signal bullish continuation.
Res: 1.1231, 1.1295, 1.1300, 1.1366
Sup: 1.1192, 1.1166, 1.1109, 1.1058
