Dip below 1.10 handle generates bearish signal
The Euro fell pivotal supports at 1.1015/00 in fresh bearish acceleration on Wednesday, as sentiment weakened on expectations for dovish stance from ECB on Thursday.
Multiple failures to clear important Fibo barrier at 1.1049 and recent action being repeatedly capped by falling 20DMA, were initial signals od recovery stall and subsequent easing, with ECB and stronger than expected US PPI data on Wednesday, contributing to fresh weakness.
Daily indicators turned south and MA’s came to bearish setup, adding to negative near-term outlook.
Daily close below psychological 1.10 support will be negative signal, which needs confirmation on extension and close below 1.0986 (Fibo 61.8% of 1.0925/1.1084 upleg).
Res: 1.1000; 1.1015; 1.1049; 1.1055
Sup: 1.0986; 1.0963; 1.0925; 1.0863