The Euro maintains positive near-term tone with immediate negative impact from weaker than expected German data (July Ifo business climate 100.8 vs 102.1 f/c and 101.7 in June) being minor.
Recovery attempts from new 3 –1/2 month lows probe through initial barriers at 1.1800 zone (falling 10DMA/psychological), but extension and close above descending 20DMA (1.1822) is needed to ease downside pressure and allow for stronger correction.
Larger downtrend remains fully in play, with extended corrective upticks expected to stall under 1.1900 zone and provide better selling opportunities.
Key resistances lay at 1.1975/1.2000 and only break here would neutralize bears and signal reversal.
Market awaits the decision from Fed two-day policy meeting for fresh direction signals.
Res: 1.1822, 1.1850, 1.1881, 1.1900.
Sup: 1.1751, 1.1737, 1.1704, 1.1694.
