Bulls face headwinds from daily cloud top again ahead of German ZEW data
The Euro remains in green for the second straight day and attacks again daily cloud top (1.1076) which capped Monday’s action.
Rising daily momentum is attempting into positive territory and supporting the action, but positive signals conflict with south-heading stochastic and flat RSI, keeping in play risk of repeated rejection at cloud top (also 50% retracement of 1.1115/1.1039 pullback).
German ZEW data is key event for the Euro today (current conditions Dec -22.3 vs -24.7 in Nov) and eyed for fresh signal.
Better than expected release would signal further recovery and open way for fresh attempts at 1.11 res8istance zone, after the indicator hit the lowest in over nine years (Apr 2010) that would add to positive signals on recent German data upside surprises.
Downbeat ZEW numbers, on the other side) would weaken near-term bulls and risk fresh weakness.
Initial supports lay at 1.1056/45 (converged 10/20/55DMA’s) and guard lower pivot at 1.1029 (daily cloud base) loss of which will be bearish.
Res: 1.1076; 1.1086; 1.1097; 1.1109
Sup: 1.1056; 1.1045; 1.1029; 1.1000