The Euro remained under the bearish pressure on Monday. Downside risks accelerated early in the session when sluggish Euro zone’s Manufacturing PMI dragged the pair down to the dashed trend-line and the 38.20% Fibonacci retracement at 1.2235. The pair subsequently edged even lower just to end the day below the weekly S1.
Technical indicators suggest that this psychological 1.22 level is likely to surrender today. However, the comparably strong support formed by the weekly S2 and the monthly S1 that should hold strong is located nearby at 1.2170.
On the other hand, the 1.22 could stop the pair’s three-day decline, especially when the 100-day SMA is likewise supporting this level. In case of an upward movement, the Euro should target the senior channel and the 55-hour SMA at 1.2270.