The Euro fell to new 3 –1/2 month low in early Monday’s trading, extending steep fall into fourth straight day.
The pair fell 1.3% last week, recording the biggest weekly loss since the last week of September 2020.
Last Friday’s close below psychological 1.20 level and pivotal Fibo support at 1.1975 (50% of 1.1602/1.2349) generated strong bearish signals, which would be boosted by close below cracked Fibo level at 1.1887 (61.8% of 1.1602/1.2349).
Bears eye next key support at 1.1813 (200DMA), violation of which would spark further acceleration lower.
Negative daily studies support the action, along with expectations for ECB’s policy announcement on Thursday which adds to downside risk.
Upticks towards 1.1952/75 (former low/broken Fibo 50%) are expected to provide better selling opportunities.
Res: 1.1887, 1.1932, 1.1952, 1.1975
Sup: 1.1813, 1.1799, 1.1778, 1.1745
