Bears consolidate under broken 1.10 support ahead of German Ifo data


The Euro traded within tight range in Asia on Tuesday, consolidating past two days’ 100-pips fall.
The pair maintains bearish bias after Monday’s close below 1.10 handle (psychological / near Fibo 61.8% of 1.0926/1.1109) generated fresh bearish signal.
Rising bearish momentum on daily chart and MA’s in negative setup support scenario as Monday’s action cracked support at 1.0969 (Fibo 76.4%), with clear break lower to open key supports at 1.0926 (3/12 Sep double-bottom).
Germany’s Ifo data is the key event of European session (Sep 94.5 f/c vs 94.3 prev) with possibility of downside surprise, following Monday’s downbeat PMI figures that would increase pressure on the single currency.
Upticks would be seen as positioning for fresh weakness while capped by falling converged 10/20DMA’s (1.1029).
Only firm break here would sideline immediate downside risk and allow for renewed attempt at trendline resistance  at 1.1053 (bear-trendline drawn from 25 June high at 1.1412).

Res: 1.1000; 1.1014; 1.1030; 1.1053
Sup: 1.0983; 1.0966; 1.0926; 1.0900