The Euro regained traction and moved higher in European trading on Thursday after being hit by stronger dollar on less dovish than expected Fed on Wednesday.
Near-term action remains within choppy and wide-range congestion which is capped by falling trendline off 1.1412 high (25 June), with the downside expected to remain vulnerable while the price stays under bear-trendline (currently at 1.1073).
Last Friday’s candle with long upper shadow, left after strong upside rejection under pivotal Fibo barrier at 1.1111 (38.2% of 1.1412/1.0926) continues to weigh, however, strong rise of bullish momentum may help fresh bulls in renewed attempt through bear-trendline and attack at 1.1111 pivot.
Firm break here is needed to confirm double-bottom (1.0926) and open way for stronger correction of 1.1412/1.0926 downtrend.
Repeated close below bear-trendline would generate initial negative signal, but return below Mon/Tue lows (1.0993/90) is needed to weaken near-term structure and re-focus 1.0926 base.
Res: 1.1073, 1.1086, 1.1111, 1.1124
Sup: 1.1040, 1.1022, 1.0990, 1.0957
