The Euro moves lower in early European trading after holding within tight consolidation in Asia on Friday and looking for eventual attack at key supports at 1.1432/22 (09 Oct spike low / Fibo 76.4% of 1.1300/1.1815 ascend).
The pair was down over 1% in strong bearish acceleration in past two days and is on track for strong bearish weekly close, which reinforces strong bearish stance.
Negative sentiment on stronger dollar, driven by strong expectations of Fed’s further rate hikes, as well as better than expected US data, was additionally boosted by rising concerns about political tensions in the Eurozone over Italian budget crisis.
Bearish daily/weekly techs support scenario, but bears may take a breather before breaking lower as deeply oversold slow stochastic on daily chart warns.
Upticks are expected to offer better selling opportunities with barriers at 1.1504/18 broken Fibo support / falling 10SMA , expected to ideally cap correction and keep intact daily cloud base (1.1545).
Res: 1.1470, 1.1504, 1.1508, 1.1526
Sup: 1.1422, 1.1387, 1.1360, 1.1315
