Near-term action remains congested but biased higher while above 1.2173 Fibo support
The Euro stands at the back foot in European trading on Wednesday after attempts to extends Tuesday’s bounce were capped by 20DMA (1.2225) which keeps the upside protected for the third straight day.
Fresh weakness was so far limited by rising 30DMA and stays above cracked pivotal Fibo support at 1.2173 (23.6% of 1.1602/1.2349), keeping in play hopes for completion of bear-trap pattern.
Momentum indicator broke into positive territory on daily chart, but moving averages are in mixed setup that lacks clearer signal.
Near-term action is expected to keep slight bullish bias while holding above 1.2173, but lift and close above 20DMA is needed to shift focus higher.
Conversely, loss of 1.2173 pivot would soften near-term tone and risk retest of correction low at 1.2132 (Monday’s low), loss of which bring near-term bears in play for deeper pullback.
Res: 1.2225; 1.2239; 1.2266; 1.2284
Sup: 1.2173; 1.2132; 1.2100; 1.2064