The Euro dented round-figure support at 1.19 in extension of fresh weakness which commenced in late Asian session and accelerated after downbeat German/EU data.
German factory orders fell 0.9% in Mar vs forecasted rise of 0.5%, while Eurozone’s investor confidence fell below expectations in May (19.2 vs 21.2 f/c). The pair maintains firm bearish tone which strengthened further after narrow consolidation in past couple of sessions kept key barrier provided by 200SMA (1.2016) intact.
Falling 10SMA is approaching 200SMA in attempt to form death-cross and generate fresh bearish signal, while negative outlook is also reinforced by firmly bearish momentum studies.
The pair is on track for daily close below 1.1936 (Fibo 61.8% of 1.1553/1.2555 ascend) which would offer another bearish signal.
Continuation of downtrend from 1.2413 (17 Apr high) could extend to 1.1790 (Fibo 76.4%), with weekly cloud top (1.1681) expected to come in focus on stronger bearish acceleration.
Meanwhile, bears could be interrupted as daily studies are oversold and bullish divergence is forming on slow stochastic.
Bearish outlook is expected to remain intact while corrective upticks stay capped under 200SMA.
Res: 1.1940; 1.1978; 1.2016; 1.2052
Sup: 1.1897; 1.1846; 1.1816; 1.1790
