Bears may extend towards 2020 low as environment remains very negative for Euro
Bears are taking a brief breather on Tuesday, facing a headwinds from new two-year low (1.0757, posted on Apr 14) but remain fully in play and threatening of further losses.
Narrow consolidation is likely to precede push through 1.0757 and 1.0727 (Apr 2020 low) towards key longer-term support at 1.0635 (2020 low).
Dovish stance that the ECB presented in its last policy meeting, despite record inflation in the EU and growing fears of reverse impact of the sanctions imposed to Russia to the union’s economy, continue to strongly weaken the sentiment and prompting traders to sell the Euro.
Daily moving averages in strong bearish setup and rising negative momentum support the notion, with upticks expected to stay below falling 10 DMA (1.0846).
Res: 1.0821; 1.0846; 1.0858; 1.0900
Sup: 1.0757; 1.0727; 1.0700; 1.0635