Euro edges higher but directionless while holding between 1.1603/71 pivots
The Euro regained traction on Friday and standing at the front foot despite mixed EU PMI data which showed a slowdown in bloc’s business activity in October, but growth in manufacturing sector remained robust.
Today’s action partially offsets negative signal from Thursday’s bearish engulfing but keeps near-term action in neutral mode between key levels at 1.1603 (converged 10/20DMA’s) and 1.1671 Fibo 38.2% of 1.1909/1.1524 descend).
Break lower would confirm initial bearish signal (bearish engulfing) and open way for renewed attack at key support provided by the base of thick ascending weekly cloud (1.1557) which s far provided strong headwinds to the downtrend from 1.2266 (May 23 high).
Conversely, sustained break of pivotal Fibo barrier at 1.1671 would sideline larger bears and signal reversal.
Res: 1.1652; 1.1671; 1.1695; 1.1716
Sup: 1.1615; 1.1603; 1.1571; 1.1557