EURUSD fell around 0.5% in early Monday trading, deflated by stronger dollar on growing expectations for Fed rate hike, as well as safe haven buying on the latest warning that pace of AI development must slow to prevent threats to humanity that resulted in strong drop in AI-linked stocks.
The pair hit one month low (1.1534), with fresh acceleration weakening technical structure on daily chart and opening way for further losses.
Break of supports at 1.1563/55 (Fibo 38.2% of 1.1324/1.1711 / 100DMA) generated fresh bearish signal, contributing to last week’s bull-trap (above 200DMA), along with completion of bearish failure swing pattern.
Negative momentum continues to strengthen, and this week’s daily cloud twist would also attract further weakness.
Bears eye immediate target at 1.1517 (Fibo 50% retracement, reinforced by 55DMA), ahead of thinning daily cloud, spanned between 1.1505 and 1.1472 (the latter also marks Fibo 61.8% retracement).
Upticks should be ideally capped by broken supports, now acting as solid resistances at 1.1560 zone, to keep bears intact.
Res: 1.1563; 1.1600; 1.1620; 1.1630
Sup: 1.1517; 1.1505; 1.1472; 1.1415
