Bears look for further extension after generating negative signals on break of important supports
The Euro is consolidating on Thursday after strong fall in past two days (0.81%) which generated bearish signals on break and close below important supports between 1.1140 and 1.1110 (Fibo 38.2% of 1.0981/1.1239 / 200DMA/ trendline support / 30DMA / 50% retracement.
Near-term bias remains with bears, additionally boosted by weak German data and favors extension towards 1.1079 (Fibo 61.8%) and 1.1063 (top of thin daily cloud), however, oversold daily stochastic and fading bearish momentum suggest the pair may hold in extended consolidation before continuing the downtrend.
Broken bull trendline (1.1129) should ideally cap and keep intact pivotal barrier at 1.1140, violation of which would sideline bears.
Res: 1.1129; 1.1140; 1.1157; 1.1178
Sup: 1.1111; 1.1092; 1.1079; 1.1063