The Euro came under increased pressure after Monday’s strong close in red that formed bearish outside day reversal pattern. Pullback from six-month high at 1.1020 broke below initial supports at 1.0935/19 (daily Tenkan-sen/10SMA) and looking for extension through another strong supports at 1.0904/ 1.0896 (top of thick 4-hr cloud/Fibo 61.8% of 1.0819/1.1020 upleg).
Further easing would challenge next pivotal supports at 1.0848 (Fibo 38.2% of 1.0568/1.1020 ascend) and 1.0828 (200SMA).
Fresh bearish acceleration may undermine broader longs on further extension lower and close below 1.0848/28 pivots, which may threaten of filling the gap from two weeks ago and confirm reversal.
Near-term studies turned into full bearish mode while slow stochastic reversed from overbought territory on daily chart and supports negative scenario. Broken daily Tenkan-sen now acts as initial resistance and so far caps today’s action.
Res: 1.0935, 1.0950, 1.0998, 1.1020
Sup: 1.0896, 1.0873, 1.0866, 1.0848
