The Euro remains in red and holding in the daily cloud on Wednesday. Bearish signal was generated on Tuesday’s dip to 1.1800 which cracked Fibo 38.2% support at 1.1805 and close below cloud top (1.1833).
Near-term bias is negative, however, overall bullish structure is expected to remain intact while the price holds above a cluster of daily MA’s between 1.1803 and 1.1767.
Formation of 20/100SMA bull-cross is expected to underpin and the pair may hold in extended consolidation between 20SMA (1.1803) and cloud top (1.1833).
Lift above cloud top would ease bearish pressure, but break above 10SMA (1.1866) is needed to neutralize and shift near-term focus higher.
Bearish scenario requires break below 1.1800 zone (20/100SMA’s) and 1.1767 (55SMA) to generate fresh bearish signal and risk extension towards cloud base (1.1721).
Res: 1.1833; 1.1866; 1.1878; 1.1917
Sup: 1.1800; 1.1767; 1.1757; 1.1721