Fresh weakness probes again below key Fibo support
Near-term action remains biased lower following triple failure at falling 20DMA (currently at 1.1023) and subsequent easing on Wednesday that attacks again cracked key Fibo support at 1.0996 (61.8% of 1.0926/1.1109 upleg).
However, strong obstacles on the downside remain and bears need another close below 1.0966 (following marginal close below on Mon and Tue’s brief probe lower) to generate fresh negative signal, confirmation of which would require extension and close below cracked 1.0969 (Fibo 76.4%) to expose key supports at 1.0926 (3 / 12 Sep lows).
Bears are supported by rising negative momentum and daily MA’s in full bearish setup.
Initial resistances lay at 1.0923/30 (falling 20/10DMA’s) and guard upper pivot at 1.1049 (trendline resistance / falling 30DMA).
Fundamentals also work against the single currency as recent weak data from Germany increase fears of the biggest EU economy is going into recession and the latest requests to begin a formal impeachment inquiry into US President Trump that boosted safe-havens.
The greenback advanced against Euro after investors digested the impeachment news and focusing Thursday’s US GDP data, which could inflate dollar if Q2 results beat expectations.
Res: 1.1023; 1.1030; 1.1049; 1.1073
Sup: 1.0983; 1.0966; 1.0926; 1.0900