The Euro edged lower in early European trading on Friday, turning focus again at key support zone between 1.1825 and 1.1811 (broken Fibo 61.8% / converging 10/20DMA’s) which contained downside attempts on Thursday. Wednesday’s bearish engulfing continues to weigh and warn of deeper correction, despite Thursday’s positive close with long-tailed daily candle. Bulls continue to focus big barrier at 1.20 but need stronger correction before final attack, with weekly close below 1.1825/11 pivots to generate a signal for such action. Dips should find ground above key supports at 1.1739/11 (monthly cloud base / 12 Aug trough) to keep immediate bulls in play, but deeper pullback towards 1.1660 (Fibo 38.2% of 1.1168/1.1965) cannot be ruled out on stronger bearish acceleration. Significantly lower than expected French and EU PMI’s and mixed figures from Germany could contribute to weak near-term tone.
Res: 1.1864, 1.1882, 1.1908, 1.1965
Sup: 1.1825, 1.1811, 1.1798, 1.1711
