The Euro attempts to stabilize above correction low at 1.1915, posted on Tuesday. Support is reinforced by rising 20SMA and lies just above another significant support at 1.1903 (daily Kijun-sen / 50% retracement of 1.1717/1.2088 upleg).
However, today’s action is in red after recovery attempts stalled at 1.1970, as Wednesday’s spike to 1.2018 was short-lived and marked strong upside rejection which weighs and keeps the downside vulnerable.
The single currency may come under renewed pressure as concerns about China bond purchases which sent the greenback lower across the board on Wednesday, started to fade.
The pair may stay in extended consolidation between 1.1900 and 1.2000 as overall structure is bullish and recent pullback seen as corrective action ahead of fresh upside.
Bullish scenario requires close above cracked 10SMA (1.1989) as initial bullish signal for extension above 1.2000 for renewed attempts at key barriers at 1.2088 (04 Jan) and 1.2092 (08 Sep) highs.
Conversely, stronger bearish signal could be expected on sustained break below 1.1900 pivot.
Res: 1.1989; 1.2018; 1.2052; 1.2092
Sup: 1.1915; 1.1903; 1.1879; 1.1860