Bears regain traction after minor recovery but may stay on hold until US NFP data
The Euro returns to red on Tuesday after minor correction in past two days lost traction ahead of initial resistances at 1.1660 zone.
The pair keeps negative tone but probes below pivotal 1.16 support zone, so far lacked strength to make a clear break, keeping in play scenario of extend consolidation before bears resume.
Traders also focus on Friday’s release of US NFP data (Sep 488K f/c vs Aug 235K) which could further inflate the dollar on strong release (at/above expectations) that would increase pressure on euro and prompt continuation of larger downtrend through pivotal supports at 1.1538 (weekly cloud base) and 1.1492 (50% retracement of 1.0635/1.2349).
Bears are expected to remain intact under strong barriers at 1.1656/64 (daily Tenkan-sen / former low of Aug 20.
Res: 1.1639; 1.1664; 1.1695; 1.1736
Sup: 1.1587; 1.1562; 1.1538; 1.1492