EURUSD dips below 55SMA on strong US data
The Euro fell to the session low at 1.1741 after better than expected US PPI data sent dollar higher across the board.
Fresh easing broke below pivotal support at 1.1756 (converged 30/55SMA’s) and generating bearish signal for test of Friday’s spike low at 1.1730 and possible extension towards next important supports at 1.1709/06 (Fibo 61.8% of 1.1553/1.1961 rally / daily cloud base).
Long upper shadows on daily candles of Monday / today, additionally weigh on near-term action.
Fed’s verdict tomorrow would confirm negative scenario for the euro on hawkish rate hike.
Res: 1.1756; 1.1792; 1.1810; 1.1833
Sup: 1.1730; 1.1706; 1.1661; 1.1650