The Euro maintains negative tone on Monday, pressured by strong fall last Thu/Fri, which retraced over 76.4% of 1.2215/1.2413 upleg. Fall on Friday spiked to 1.2249, but failed to close below pivotal support at 1.2290 (Fibo 61.8% of 1.2215/1.2413). Fresh weakness today looks for attack at strong support at 1.2235 (base of thick daily cloud, reinforced by 20-d lower Bollinger band). Daily techs are in bearish setup and two long red candles of Thu/Fri continues to weigh, keeping the downside firmly in focus. Break through cloud base would expose next strong supports at 1.2215 (06 Apr trough) and 1.2204 (rising 100SMA). Today’s close below 1.2290 Fibo level is needed to generate further bearish signal and confirm negative sentiment, as break through 1.2215/04 would expose key short-term supports at 1.2172 (Fibo 38.2% of 1.1553/1.1.2555 rally and 1.2154 (01 Mar low of multi-month consolidation range).
Res: 1.2290, 1.2320, 1.2345, 1.2354
Sup: 1.2245, 1.2215, 1.2204, 1.2172
