Bears face strong headwinds from key support zone

The Euro bounced back above 1.12 handle after dipping to 1.1194 on weaker than expected German Ifo data (99.2 vs 99.9 f/c) in early European trading on Wednesday.
Tuesday’s strong bounce from three-week low at 1.1192 and failure to close below broken pivotal support at 1.1226 (18 Apr low), along with today’s quick recovery, signals that bears face strong headwinds from key supports at 1.1186 (Fibo 61.8% of 1.0340/1.2555) and 1.1183/76 (2 Apr low / 7 Mar low).
Flat daily momentum and stochastic suggest that bears may hold in extended consolidation before resuming, as daily MA’s in full bearish setup continue to weigh.
Bears can be also boosted by speculations of collapse of Italian government on rising dispute between coalition members ahead of 26 May European Parliament election.
Former low at 1.1226 now marks immediate resistance, followed by falling 20SMA (1.1245), with extended upticks expected to remain below south-turning 10SMA (1.1259).

Res: 1.1226; 1.1245; 1.1259; 1.1272
Sup: 1.1192; 1.1186; 1.1183; 1.1176