Pullback loses traction but fundamentals and techs continue to point lower

 

Pullback from new 2020 high extended into third straight day but fresh bears are taking a breather after faced headwinds from bids from last week’s low (1.1762) and showing hesitation to clearly break pivotal supports at 1.1820  zone (double-Fibo / rising 30DMA).
Dollar’s drop after US data contributed to Euro’s rise which started in early European hours today.
Traders are looking for the bottom of current correction which was sparked by need to trim massive longs before eventual clear break of psychological 1.20 barrier.
Despite today’s action standing at the front foot, both, fundamentals and technical studies point lower.
Downbeat EU / German services PMI’s which showed a slowdown in the sector’s recovery in Aug, as well as July EU retail sales miss, contribute to negative signals, generated from south-heading daily indicators (momentum is about to break into negative territory) and 10/20DMA’s moved above the price today, showing more space for the correction.
Signals need confirmation on close below 1.1818/16 pivots (rising 30DMA / Fibo 61.8% of 1.1695/1.2011 upleg) that would expose next pivotal supports at 1.1750 and 1.1700 zone.
US Jobs data for August that will be released on Friday, are focused for fresh direction signals.

Res: 1.1853; 1.1888; 1.1928; 1.1965
Sup: 1.1816; 1.1788; 1.1770; 1.1754