The Euro remains in red in early Friday’s trading and hit new lows in over four months, in extension of strong bearish acceleration in past two days. Two long red candles of past two days and Thursday’s one with long upper shadow, weigh heavily, as the pair is on track for strong bearish weekly close, which would add on existing pressure. Dovish stance from ECB’s President Draghi on Thursday and strong US dollar, driven by higher US yields which cracked important 3% barrier, maintain strong pressure on the single currency. Multiple bear-crosses of daily MA’s and 14-d momentum in steep descend, maintain firm bearish setup of daily techs. Fresh weakness eyes immediate support at 1.2054 (Fibo 50% of 1.1553/1.2555 rally/weekly Kijun-sen) which marks more significant psychological 1.20 support, reinforced by 200SMA. Thursday’s close below pivotal support at 1.2154 generated strong reversal signal, which looks for confirmation on weekly close below 1.2154. Violation of 1.20 handle would generate another strong bearish signal and could spark stronger bearish acceleration. Corrective upticks on strongly oversold slow stochastic and attracted by daily cloud twist (next Tuesday), are expected to offer better selling opportunities and should be ideally capped by 100SMA (1.2215).
Res: 1.2116, 1.2154, 1.2172, 1.2215
Sup: 1.2054, 1.2000, 1.1936, 1.1900
