The Euro trades in red for the fourth straight day and hit new two-week low at 1.1267 in early European trading on Wednesday. Strong bearish signal was generated on Tuesday’s close below 200WMA/Fibo 61.8% of 1.1215/1.1472 (1.1313) which exposed 2018 low at 1.1215 (12 Nov).
Strong signals that the US would proceed with its plan and increase tariffs on imports from China, as early as next week, hawkish tone from Fed speakers on Tuesday, signaling that Fed remains on track for Dec rate hike and issues with Italy’s budget as the EU showed no willingness to compromise and may proceed faster with disciplinary action are three key factors that keep the single currency pressured.
Extension below key supports at 1.1215 (2018 low) and 1.1186 (Fibo 61.8% of larger 1.0340/1.2555 uptrend) would spark extension of the downtrend from 1.2555 (2018 high, posted on 16 Feb).
Corrective upticks should be capped by converged 10/20SMA’s 1.1357) to keep bears intact.
Res: 1.1300, 1.1313, 1.1343, 1.1357
Sup: 1.1267, 1.1215, 1.1186, 1.1117
