The Euro is trading at a reduced speed and just ticks above key support at 1.0806 (Mar 7 low) on Wednesday, as bears slow on headwinds from 1.0806 and ahead of tomorrow’s ECB policy meeting.
The bear-leg from 1.1184 (Mar 31 high) remains intact and looks for renewed probe through 1.0806 pivot (where larger downtrend stalled last month), break of which would signal bearish continuation and expose key longer-term support at 1.0635 (Mar 2020 low).
Bearish studies and daily and weekly chart support the action, but traders await the decision of the European Central Bank to get fresh direction signal.
Hawkish tone from President Lagarde would lift the Euro and sideline immediate downside risk, however, the single currency faces another risk from French presidential election, as two candidates go to the second round, with main fears of President Macron losing the election that would further undermine EU unity, already dented by rejection of Germany, Hungary and Slovakia to vote for embargo on Russia’s oil and natural gas.
Res: 1.0859; 1.0895; 1.0918; 1.0950
Sup: 1.0806; 1.0766; 1.0716; 1.0661
