The Euro remains constructive in early US trading but still lacking momentum for retest of Asian high at 1.1659 and attack at daily cloud, which provides strong headwinds despite being very thin. Today’s action was so far shaped in long-legged Doji candle, signaling strong indecision, as US jobs data, due on Friday, are eyed for stronger signals. Today’s mixed US data provided little action, as jobless claims fell below expectations (203K vs 214K f/c) and ADP report showed private sector created 163K new jobs in Aug vs expectations for 188K. Conflicting daily indicators (MA’s are turning into bullish configuration / slow stochastic trends higher, while momentum created bear-cross and heading south), suggest the pair may hold in extended directionless mode, awaiting US jobs data as a catalyst for fresh action. Bullish scenario requires sustained break above daily cloud top (1.1682) and violation of falling 100SMA (1.1711) to signal further advance, while initial negative signal could be expected on break below 55SMA (1.1615) and stronger downside action to be expected on violation of 1.1570/47 (30/20SMA’s).
Res: 1.1659; 1.1678; 1.1711; 1.1733
Sup: 1.1615; 1.1600; 1.1570; 1.1547
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