Bears regain control after mild recovery; downbeat German ZEW data further sour the sentiment
The Euro lost traction on Tuesday and fell towards last week’s new multi-month low (1.1529) after recovery attempts were repeatedly capped by falling 10DMA (currently at 1.1575).
Fresh weakness suggests that relief from downbeat US NFP was short-lived, and the sentiment was additionally soured by weaker than expected German ZEW economic sentiment which fell to the lowest since March 2020 in October.
Bears probe again through pivotal support provided by the base of thick ascending weekly cloud (1.1557), with break here and another significant level at 1.1492 (50% retracement of 1.0635/1.2349 uptrend) to signal a continuation of the downtrend 2021 high (1.2349).
Near-term bias is expected to remain with bears while the price action stays below 10DMA, while rally and close above descending 20DMA (1.1651) would sideline bears.
Res: 1.1576; 1.1586; 1.1605; 1.1640
Sup: 1.1529; 1.1492; 1.1421; 1.1402