The Euro holds negative tone at the start of the week accelerates further down in early European trading, weighed by fresh risk appetite in the market on increased chance of US/China trade deal that negatively impacts the single currency.
Also, last week’s multiple failures to break through thin daily cloud and weekly action being capped by 100SMA, adds to negative outlook, as four consecutive daily candles with long upper shadows signaled that bulls lost traction and stalled.
Fresh weakness broke pivotal supports at 1.1352/48 (10SMA/Fibo 38.2% of 1.1234/1.1419) and pressures 20SMA (1.1335), with daily close below these supports, to generate further negative signal for extension towards 1.1305/02 (Fibo 61.8%/4-hr cloud base) pivots.
Return above 10SMA would ease immediate downside risk, but improvement could be expected on eventual close above 100SMA (1.1384).
Res: 1.1352, 1.1384, 1.1407, 1.1419
Sup: 1.1327, 1.1305, 1.1276, 1.1234
