Despite Euro’s pullback from three-week low of 1.1123 on Wednesday, the subsequent rejection at 5-DMA in Asian session amid re-entry in the falling channel last Friday and bearish 5-DMA and 10-DMA crossover suggests the currency could drop to 1.1118 (200-DMA), breach of which would bring much stronger drop to 1.1046 (Aug 5 low).
On the higher side, only day end close above 1.1182 (channel resistance) would signal bearish invalidation.
On the higher side, only day end close above 1.1182 (channel resistance) would signal bearish invalidation.
