Bears are consolidating as ECB measures encourage but overall picture remains negative
The Euro bounced some hundred pips from new three-year low (1.0725) on Thursday, as bears take a breather following comments of ECB President Christine Lagarde, who expressed strong commitments with no limits in attempts to defend the single currency, and slight easing of dollar on strong rise in US jobless claims.
Overall picture is firmly bearish as negative sentiment remains boosted by persisting strong demand for dollar, as dollar index rose 7.5% in less than two weeks, on track for the biggest winning streak in almost thirty years.
Bears are taking a short break and positioning for fresh push lower, with stronger upticks expected to stay below 1.10 barrier (psychological / base of falling daily cloud) to main bearish bias.
Break of 1.07 support would open way towards Fibo projection at 1.0608 and Apr 2017 trough at 1.0570.
Res: 1.0893; 1.0907; 1.1000; 1.1020
Sup: 1.0778; 1.0725; 1.0608; 1.0570