The Euro accelerated lower in early European trading after quiet mode in holiday impacted Asia, keeping in red for the second day.
Mixed results from EU members Services PMI in Jan made little impact on the pair’s performance.
Break below Fibo support at 1.1428 (38.2% of 1.1289/1.1514) and probe through MA supports at 1.1421/17 zone (10/20/30SMA) was negative signal, with twist of daily cloud (1.1397) being magnetic for bears.
Bearishly aligned daily techs add to negative near-term outlook, with violation of daily cloud and nearby 55SMA (1.1392) needed to signal further weakness and expose Fibo supports at 1.1375/42 (Fibo 61.8% & 76.4% of 1.1289/1.1514 respectively).
Alternative scenario requires return and close above 10SMA (1.1439) to sideline downside threats.
Res: 1.1428, 1.1439, 1.1461, 1.1488
Sup: 1.1397, 1.1375, 1.1342, 1.1300
