Pullback from new 2020 high extends but would likely stall ahead of key supports at 1.17 zone if the ECB does not take any significant step to lower the currency

The Euro stays in red in European session on Wednesday, weighed down by weakness of sterling and firm dollar.
Bears extend into seventh consecutive day and hit fresh three-week low at 1.1756, with weak daily studies supporting scenario of extending corrective leg from new 2020 high at 1.2011, after bulls got trapped at psychological 1.20 barrier.
Key supports at 1.1700 zone (12/03 Aug higher base / Fibo 38.2% of 1.1168/1.2011 / rising 10WMA) are coming in focus, but traders await more news from tomorrow’s ECB policy meeting and following press-conference of central bank’s President Christine Lagarde.
The ECB is not expected to take any significant step regarding the policy and will likely reiterate their readiness to further support economic recovery.
The policymakers may try to talk the Euro down, as strong single currency, which rose 10.7% since April, becomes problematic for the ECB.
It is not likely that the ECB will ease rates or intervene in order to lower the euro that fuels expectations of corrective pullback’s stall on approach to 1.1700 zone that would signal good opportunity to re-enter strong uptrend for renewed attack at 1.2000 zone.
Alternatively, stronger rhetoric from the ECB regarding attempts to further lower the currency would result extended correction on break of 1.1700 zone pivots.

Res: 1.1787; 1.1807; 1.1822; 1.1846
Sup: 1.1754; 1.1711; 1.1689; 1.1646