Bears pressure 2019 low and eye psychological 1.10 support, with fireworks expected on break
The Euro maintains strong bearish bias, holding in red for the fifth straight day, with rising risk of retesting 1 Aug spike low at 1.1027 (2019 low) after bears broke below last Friday’s low at 1.1051.
Sentiment remains negative ahead of ECB meeting in September, with rising expectations for monetary easing, as well as concerns about no-deal Brexit, as 31 Oct deadline nears.
Daily chart shows strong bearish momentum and MA’s in full bearish configuration, with the most recent formation of 5/10DMA bear-cross, adding to negative tone.
Violation of 1.1027 low would open way towards psychological 1.10 support and risk stronger bearish acceleration on break that would trigger a number of stops parked below.
Caution on oversold daily stochastic which suggests that bears may show hesitation before attacking key supports.
Upticks will be seen as positioning for fresh downside and expected to remain below falling 10DMA (1.1084).
Res: 1.1051; 1.1073; 1.1084; 1.1115
Sup: 1.1027; 1.1000; 1.0935; 1.0900