Can sellers establish a near-term bearish bias?
It’s been a rather subdued day in terms of price action barring the quickfire moves across major currencies in reaction to the German PMI data. The euro was one of those that suffered – for obvious reasons – and since then has been sitting near the lows against the dollar. Right now, price looks to be knocking on the door of a break of the 200-hour MA (blue line) as sellers look to establish a more bearish bias in the near-term.
However, there’s still some additional support to be had around 1.1360 from the swing region support as we saw on Tuesday. But I reckon this time a break to the downside would be more significant as price will trade below both key hourly moving averages.
In such a move, 1.1350 will be the first key level for buyers to try and mount any form of defense but with the more bearish near-term momentum, a trip towards 1.1300 looks to be more on the cards particularly when euro sentiment is starting to turn softer on the back of sluggish economic data points and Italy’s budget standoff with the European Commission.