The Euro accelerated lower in early US session on Tuesday and pressures key Fibo support at 1.1280 (61.8% of 1.1176/1.1448) as weaker than expected US housing data turned existing risk mode down.
US building permits fell 1.6% in Feb, beating forecast for -1.3% and Jan 1.4%, while housing starts slumped in Feb (-8.7% vs -0.8% f/c and 11.7% previous month).
Negative tone is expected to persist while the price holds below 20SMA (1.1320) which repeatedly capped upticks on Mon/Tue. Eventual break of 1.1280 Fibo support would risk extension towards 1.1240 (Fibo 76.4%) with stronger bearish acceleration to expose psychological 1.1200 support and key 1.1176 support (2019 low, posted on 7 Mar).
Fresh bearish momentum is emerging and adds to pressure from thick daily cloud and daily MA’s in negative setup. Lift above 20 SMA would ease bearish pressure, while sustained break above 10SMA (1.1334) is needed to sideline bears.
Res: 1.1320; 1.1334; 1.1344; 1.1363
Sup: 1.1280; 1.1240; 1.1200; 1.1176
