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EURUSD Hits New 5-Month High, Bears Risk Extension Towards Strong Supports At 1.1709/1.1675

The Euro hit new five-month low in Asian session on Wednesday, in attempts to extend strong fall of Tuesday when the pair was down almost 1% and fully retraced 1.1822/1.1996 corrective upleg.

Stronger dollar, driven by rising US 10-y yields which hit the highest level in seven years, keep the single currency under strong pressure and risk continuation of downtrend from 1.2413 (17 Apr high).

Firm break below 1.18 handle would open 1.1717 (12 Dec trough) and more significant supports at 1.1709 (Fibo 38.2% of 1.0340/1.2555 ascend) and 1.1675 (weekly cloud top).

Bearish techs support the notion as converging 20 and 200SMA’s are about to form bear-cross and reinforce negative stance.

Base of thick 4-hr cloud at 1.1884 and falling 10SMA at 1.1904 mark solid barriers which should cap stronger upticks.

German CPI came out in line with expectations and focus turns towards EU inflation data which are forecasted unchanged from previous month (Apr CPI y/y 1.2% f/c vs 1.2% prev, Core 0.7% f/c vs 0.7% prev).

Res: 1.1858, 1.1884, 1.1904, 1.1938
Sup: 1.1815, 1.1776, 1.1717, 1.1709

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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