Bears expected to keep control as long as price holds below converged 10/20DMA’s
The Euro returned to weakness after late Thursday/ early Friday recovery stalled on approach to pivotal barrier at 1.0863 (converged 10/20DMA’s).
Strong demand for dollar as traders look for safety on deepening crisis, keeps the single currency under pressure.
Current action could be seen as consolidation after three-day steep fall this week before final push towards target at 1.0727 (24 Apr low).
Daily moving averages remain in full bearish setup but momentum and RSI are flat, supporting scenario of consolidation.
Weaker than expected German trade data weighed in early European trading, with US jobs report for April being in focus as key event today.
Non-farm payrolls are expected to plunge 22 million in April and unemployment to rise to 16%, signaling the worst condition in US labor market since Great Depression.
Res: 1.0838; 1.0863; 1.0879; 1.0906
Sup: 1.0819; 1.0795; 1.0766; 1.0727