Although the euro remained on the back foot in Asia Wed n briefly penetrated Tue's 1.1756 low to a fresh 3-1/2 month trough of 1.1753 in Europe, short-covering lifted price to 1.1782, then later to 1.1804 in NY.

On the bigger picture, despite euro's LT up move FM 2017 near 14-year low of 1.0341 to a fresh 3-year peak of 1.2555 in mid-Feb 2018, subsequent decline to a near 3-year 1.0637 low in Mar 2020 signals correction has ended. Despite an impressive up move to a near 33-month 1.2349 peak in early Jan 2021, a subsequent decline to 1.1705 (Mar) signals top is made. Although the euro climbed to 1.2266 in May, the subsequent fall to 1.1773 in mid-Jul suggests a re-test of 2021 bottom at 1.1705 would be seen, a break would extend MT fall FM 1.2349 TWD 1.1603 b4 correction occurs due to 'bullish convergences' on daily indicators. Only abv 1.1894 signals temp. low made n risks stronger retracement TWD 1.1975, break, 1.2093.

Today, as Wed's 1.1753 low was accompanied by 'bullish convergences' on hourly indicators, subsequent recovery signals temp. low is made n consolidation is seen ahead of the key ECB announcement. As long as 1.1850 res holds, weakness TWD 2021 bottom at 1.1705 is likely. Only abv 1.1850 risks 1.1880/90.

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