Bears are taking a breather before final attack at key support at 1.0926
The Euro is holding within narrow consolidation above new two-week low at 1.0937 in early Thursday’s trading, but remains strongly biased lower, following Wednesday’s 0.7% fall.
The single currency was hit by fresh strength of US dollar which was inflated by comments from US President Trump, who signaled prospect in trade talks with China and sidelined prospect of impeachment prospect.
Wednesday’s big red daily candle weighs heavily as bears pressure key supports at 1.0926 (3 / 12 Sep base), loss of which would expose psychological 1.0900 support and more significant 1.0863 level (Fibo 76.4% of 1.0340/1.2555 ascend).
Wednesday’s repeated close below 1.0996 (Fibo 61.8% of 1.0926/1.1109 upleg) and extension and close below 1.0969 (Fibo 76.4%) generated strong bearish signals, however, bears may take a breather before final attack at 1.0926 pivot, as oversold daily stochastic and north-turning momentum (deeply in negative territory) support the notion.
Bears might position for fresh push lower, with upticks to be capped below 1.0996/1.1013 (broken Fibo support / falling converged 10/20DMA’s) to keep bears intact.
Res: 1.0965; 1.0996; 1.1013; 1.1040
Sup: 1.0937; 1.0926; 1.0900; 1.0863