The Euro is holding near two-week lows and pressuring key supports at 1.1200 zone in early Europe on Monday, following strong fall on Friday after upbeat US data inflated dollar.
Friday’s break below converged 55/20/30SMA’s and marginal close below daily cloud base (1.1208) was bearish signal, which needs confirmation on firm break of daily cloud base/Fibo 61.8% of 1.1116/1.1347 for test of 1.1170 (Fibo 76.4%) and possible further bearish acceleration.
Consolidation may precede fresh downside as daily stochastic is oversold and momentum turned north.
Upticks are expected to offer better selling opportunities, as Fed is expected to soften its dovish stance after solid US retail sales data that may cool down expectations for rate cut.
Converged falling 10/100SMA’s (1.1267/69) should cap extended upticks and maintain bearish bias.
Res: 1.1220, 1.1231, 1.1259, 1.1269
Sup: 1.1202, 1.1170, 1.1160, 1.1116
