The Euro fell 0.3% in Asia / early European trading on Monday, as US/China ceasefire deal boosted dollar.
The single currency holds in red at the first day of week / month and quarter and generates initial negative signals as two-legged recovery rally from 1.11 zone stalled at 1.14 area.
Fresh weakness after three consecutive long-legged daily Dojis already broke below important supports at 1.1342 (200DMA) and 1.1324 (Fibo 38.2% of 1.1181/1.1412 / 10DMA), generating initial reversal signal, which requires confirmation on break and close below 1.1298/96 (20DMA / 50% retracement).
The sentiment has soured after Trump/Xi agreement, with weakening daily techs supporting scenario.
Momentum is about to break into negative territory, stochastic is heading south, while 5DMA reversed and heading towards 200SMA, in attempt to form death cross.
Also, Evening Doji Star reversal pattern is forming on weekly chart that adds to negative outlook.
Solid resistance lays at 1.1342/50 zone (broken 200DMA / floor of three-day congestion) which is expected to cap upticks and keep fresh bearish bias.
Res: 1.1357, 1.1371, 1.1393, 1.1412
Sup: 1.1316, 1.1296, 1.1277, 1.1269
