The Euro is holding in daily cloud on Tuesday and probes again below strong supports at 1.1720/10 (Fibo 38.2% of 1.1118/1.2092 rally / weekly 200SMA).
The pair hit new low at 1.1696 (the lowest since 17 Aug) but so far without clear break lower. Monday’s long bearish candle weighs on near-term action for final break below 1.1720/10 pivots and fresh bearish acceleration which could extend towards next strong supports at 1.1605/1.1594 (50% retracement of Jun/Sep 1.1118/1.2092 ascend / daily cloud base).
Meanwhile, extended consolidation could be expected while supports at 1.1720/10 hold, but upside action should be limited under cloud top, as formation of 10/55 SMA’s bear-cross (1.1825) maintains downside pressure.
Res: 1.1748, 1.1764, 1.1780, 1.1810
Sup: 1.1720, 1.1696, 1.1662, 1.1594
