Bears look for further extension

The Euro extends weakness in early Wednesday’s trading, following return below 1.07 mark and tested Fibo support at 1.0669 (76.4% retracement of 1.0635/1.0779 recovery leg).

Optimistic signals from ECB’s survey which showed that EU consumers lowered their inflation expectations, implying that the worst inflation problems are now in the past and slower than expected rise in German industrial production in April, contribute to Euro’s negative near-term sentiment.

Daily technical studies show negative momentum and moving averages in bearish configuration, as the action remains weighed by thick daily Ichimoku cloud.

Bears look for clear break of 1.0669 support (after attack on Tuesday failed here) to test pivotal near-term supports at 1.0652/35 (Fibo 76.4% of larger 1.0516/1.1095 / May 31 low) violation of which would open way for attack at 2023 low at 1.0516 (Mar 15 low, reinforced by rising 200DMA).

Upticks should stay capped by falling 10DMA (1.0713) to keep fresh near-term bears intact.

Only break and close above 1.0768/79 (20DMA / June 2 lower top) would ease immediate downside pressure.


Res:
1.0700; 1.0713; 1.0737; 1.0779
Sup: 1.0652; 1.0635; 1.0600; 1.0551