The Euro remains in red on Thursday and extends descend from week’s high at 1.1720, pressuring key supports at 1.1509/08 (29 May/21 Jun lows). Steady dollar keeps the single currency under pressure which could intensify on political complications in Germany. Wednesday’s close below falling 10SMA turned daily MA’s in full bearish configuration, with growing bearish momentum and overall negative sentiment for the single currency, signaling further weakness. Bearish engulfing pattern is forming on weekly chart which could increase pressure on Euro. Eventual break below 1.1509/08 base would open way for test of Fibo support at 1.1447 (50% retracement of larger 1.0340/1.2555 ascend and 1.14 zone in extension. Meanwhile, bounces on month-end profit taking could be anticipated. Upticks are expected to offer better positions ahead of fresh weakness as sentiment could sour further if political situation in Germany intensifies. Broken 10SMA offers initial resistance at 1.1610, while stronger upticks should be capped by falling 20SMA (1.1670).
Res: 1.1573, 1.1610, 1.1622, 1.1670
Sup: 1.1527, 1.1508, 1.1447, 1.1400
