Bears extend through key Fibo support after double upside failure
Downside risk increases as Euro extends weakness below trendline support (1.1180) and key Fibo point at 1.1169 (61.8% of 1.1111/1.1263), after double upside rejection at 30SMA (Wed / Thu).
Weaker pound on fresh negative news regarding Brexit, drags the single currency, with stronger dollar adding pressure.
Eurozone’s Apr CPI came in line with expectations, but below previous month’s figure, that additionally weighs.
Fresh bearish momentum is building up and daily MA’s are in full bearish configuration, setting scope for further weakness, which looks for bearish signal on weekly close below cracked Fibo support at 1.1169.
Oversold daily stochastic warns that bears might be briefly paused.
Broken bull-trendline now marks solid resistance, with extended upticks expected to remain below a cluster of daily MA’s (5;10;20 SMA) and 4-hr cloud base at 1.1200 zone.
Res: 1.1180; 1.1200; 1.1224; 1.1246
Sup: 1.1158; 1.1147; 1.1134; 1.1111