Bears are positioning for fresh weakness

The Euro bounces from new 2 ½ week low at 1.1246, posted earlier today, in extension of Tuesday’s 0.4% fall that generated bearish signal on close below important Fibo support at 1.1280 (61.8% of 1.1176/1.1448 upleg).
Bears are taking a breather on oversold conditions and profit-taking, but outlook remains negative and current move seen as positioning.
Dovish tone from ECB President Draghi, who again highlighted downside risks, adds to negative tone.
Extended upticks should be capped at 1.1310/20 zone (converging 20/30SMA’s that created bear-cross) to keep bears in play. Repeated close below 1.1280 handle is needed to confirm bearish stance for attack at 1.1240 (Fibo 76.4%) and possible extension towards key support at 1.1176 (2019 low).

Res: 1.1285; 1.1310; 1.1320; 1.1344
Sup: 1.1263; 1.1240; 1.1200; 1.1176