EURUSD falls further after upbeat US data; focus turns towards FOMC meeting next week
The Euro probed below key supports at 1.2271/65 (55SMA / Fibo 61.8% of 1.2154/1.2445 upleg) as the dollar firmed after upbeat IP and Michigan data.
The pair is on track for daily close in the cloud and below1.2271/65 pivots, which would generate stronger bearish signal.
The notion is supported by the second bearish weekly candle with long upper shadow.
Extension below 55SMA would look for test of 1.2205 (09 Feb low) and may stretch towards key support at 1.2154 (01 Mar).
FOMC policy meeting will be closely watched as key event next week, with hawkish stance of the central bank expected to boost dollar.
However, EURUSD needs break below 1.2154 low to generate reversal signal and open way for stronger retracement of larger 1.1553/1.2555 ascend.
Res: 1.2300; 1.2336; 1.2353; 1.2383
Sup: 1.2260; 1.2223; 1.2205; 1.2154