The Euro stands at the back foot at the beginning of the week and extends pullback after last week’s double upside rejection at daily Kijun-sen.
Fresh weakness on Monday broke below 1.1800 pivot (Fibo 38.2% of 1.1669/1.1879 upleg) and pressures next supports at 1.1779/74 (10SMA / Tenkan-sen).
Bearishly aligned techs on daily chart favor further downside and break through 10SMA / Tenkan-sen would further boost near-term bears for extension towards daily cloud base (1.1702).
Broken 20SMA marks initial resistance at 1.1813, with south-turning Kijun-sen (1.1850) expected to cap upticks.
Today’s calendar is thin with EU trade balance for August (23.3B f/c vs 23.2B prev) and speech from ECB’s Lautenschlaeger being key releases from the Eurozone today.
Markets are awaiting news from Spain as Catalonian leader failed to clarify to Spanish PM Rajoy whether he had declared independence of Catalonia, with fresh political tensions expected to impact the single currency.
Res: 1.1813, 1.1850, 1.1879, 1.1917
Sup: 1.1774, 1.1749, 1.1702, 1.1669