Extended consolidation above new 2019 low awaiting Fed for fresh signals
The Euro showed mild reaction on a batch of data from the EU today, as upbeat German retail sales and slightly better than expected jobs data were offset by French and Spanish GDP, which came in line and slightly below expectations, while EU GDP was slightly better than expected, but inflation remains weak.
The pair continues to trade within consolidation range above annual low at 1.1101, as rising bearish momentum keeps larger bears firmly in play and limits recovery attempts.
Sideways mode extends into fifth straight day as markets await Fed to announce their decision on announcement after two-day policy meeting, due later today.
Bears are pausing above key 1.11 support zone, keeping risk at the downside as long as price action stays below falling 10DMA (1.1171) also near Fibo 23.6% of 1.1412/1.1101 descend.
Firm break here would generate initial reversal signal and expose pivots at 1.1205/20 (falling 20DMA / Fibo 38.2% / bear-trendline off 1.1412 high) break of which would signal reversal and bring bulls back to play.
Res: 1.1160; 1.1171; 1.1205; 1.1220
Sup: 1.1143; 1.1112; 1.1101; 1.1050