Strong acceleration lower in the mid-European session confirms Euro’s bearish stance, as dollar rallies on higher US yields.
Fresh weakness broke below 4-hr cloud base 1.1906 and cracked next pivot at 1.1888 (Fibo 61.8% of 1.1822/1.1996 upleg) in extension.
Falling thick 4-hr cloud weighs heavily as the pair extends weakness towards 1.1863/49 ( Fibo 76.4% / rising weekly 55SMA), with key support at 1.1822 (09 May low) coming in focus.
Growing bearish sentiment needs confirmation on firm break below weekly 55SMA and 1.1822 low to signal extension of pullback from 1.2555 (2018 high) towards next key support at 1.1709 (Fibo 38.2% of 1.0340/1.2555, Dec 2016/Feb 2018 rally).
Falling 10SMA (currently at 1.1920) capped today’s action and maintains bearish pressure
US Apr retail sales are in focus as key event of the American session.
Res: 1.1945; 1.1963; 1.1980; 1.1996
Sup: 1.1910; 1.1889; 1.1875; 1.1863