Long bearish daily candle that was left on Friday weighs on near-term action, as the Euro probed below daily cloud in early Monday’s trading.
Overall strong bearish sentiment is also supported by the second consecutive bearish weekly close and formation of 10/30 SMA bear-cross, seeing risk of further downside on clear break below the cloud. Next target lies at 1.0524 (09 Mar trough), ahead of key short-term support at 1.0492 (22 Feb/02 Mar higher base).
Near-term price action is consolidating around daily cloud base (1.0583), with little support seen from oversold slow stochastic on daily chart that remains in negative territory for now.
Solid barriers at 1.0612/21 (daily cloud top/100 SMA) are expected to ideally cap upticks.
Res: 1.0592, 1.0612, 1.0621, 1.0650
Sup: 1.0568, 1.0524, 1.0492, 1.0452