Bulls pressure 1.20 barrier but may take a breather before break
The Euro is holding just under new 28-month high (1.1965) in early Wednesday’s trading, being in green for the sixth straight day.
Bulls focus psychological 1.20 barrier which is seen as pivotal level, but may face headwinds here and take a breather before attempting to break higher.
Contracting 20-d Bollinger bands on daily chart and south-heading 14-d momentum generate initial signals of stall.
Also, traders may trim their longs, that would add to downside pressure.
Corrective dips are expected to offer better buying opportunities, with initial support at 1.1822 (10DMA), followed by 1.1793 (20DMA) and key support at 1.1711 (12 Aug trough) which needs to contain to keep bulls in play.
Fundamentals are also expected to play important role, with EU inflation data (July CPI is expected to remain unchanged) and Fed minutes from July meeting, as the central bank may give a hints about its important September meeting, in which Fed will announce a guidance for the new target.
Res: 1.1965; 1.2000; 1.2050; 1.2102
Sup: 1.1922; 1.1878; 1.1822; 1.1793