The Euro stands at the back foot in early Monday’s trading and hit new three-week low at 1.1526, maintaining negative tone for further weakness. Strong bearish signals on last Friday’s close below pivotal supports at 1.1568 (30SMA / Fibo 38.2% of 1.1300/1.1733 upleg) and 1.1562 (base of thick weekly cloud) add to increasing bearish pressure. Also, Friday’s long red daily candle weighs, along with 14-d momentum breaking into negative territory and slow stochastic heading south after forming bear-cross. Bears pressure initial support at 1.1517 (50% of 1.1300/1.1733 / daily Kijun-sen), with weekly 100SMA (1.1483) and Fibo 61.8% (1.1466), coming in focus. Strong US August jobs data, released on Friday and persisting fears about escalation in the US – China trade conflict, keep the greenback supported. Corrective upticks would be seen as positioning for fresh weakness, with broken 55SMA (1.1612) expected to cap. ECB’s policy meeting on Thursday is key event for the Euro this week and traders expected to get some stronger signals, despite the central bank’s stance of keeping rates unchanged until mid-2019 and QE program at least until the end of this year.
Res: 1.1568, 1.1600, 1.1626, 1.1649
Sup: 1.1517, 1.1483, 1.1466, 1.1400
