EURUSD – weaker dollar boost the Euro but upside action was so far limited, keeping 1.1500 target in focus
The Euro returned to 1.1600 zone in early Wednesday’s trading but upside attempts off Tuesday’s fresh low at 1.1553 (the lowest since 20 July) were so far limited.
The single currency was boosted by rumors about delay of US tax reforms plan, however, stronger upside action could be expected on sustained break above pivotal barrier at 1.1622 (falling 10SMA / Tenkan-sen).
Extended correction above 1.1622 would face barriers at 1.1644 (broken bearish flag’s lower boundary); 1.1674 (broken neckline of daily H&S pattern) and pivotal 1.1700 zone, break of which would signal stronger recovery.
Bearish daily studies see extension towards 1.1500 support zone as more likely scenario then rally towards 1.1700.
Res: 1.1622; 1.1644; 1.1674; 1.1690
Sup: 1.1583; 1.1553; 1.1510; 1.1445