The Euro fell further in Asia, coming under fresh pressure after ECB chief Draghi signaled in his speech on Monday that stimulus program is likely to extend. Also, fresh risk aversion in the markets that sent EURJPY cross significantly lower dragged the EURUSD pair.
Concerns about Greek bailout are adding on developing negative sentiment around the Euro.
The pair is trading in red for the fourth consecutive day and hit session low just ahead of 1.1100 support (Fibo 38.2% of 1.0839/1.1268 upleg), which marks the trigger for further weakness.
Break below 1.1100 handle could accelerate through 1.1060 (base of thick 4-hr cloud, reinforced by rising 20SMA ) and may extend towards psychological 1.1000 support (also Fibo 61.8% of 1.0839/1.1268).
Daily RSI reversed from overbought territory and shows a plenty of room at the downside, however, oversold slow stochastic suggests bears may pause, but so far lacking firmer signal as the indicator is still heading south.
Broken daily Tenkan-sen caps Tuesday’s action at 1.1071 and marks initial barrier, with extended upticks expected to hold below 4-hr cloud top (1.1194) to keep near-term bears in play.
German inflation and EU Consumer confidence data are due later and eyed for further signals.
Res: 1.1171, 1.1194, 1.1234, 1.1250
Sup: 1.1100, 1.1060, 1.1053, 1.1000
