Downbeat German data push Euro below 1.10 support, increasing risk of retesting key supports
The Euro spiraled below 1.10 handle in early European trading on Monday, hit by downbeat German PMI data (Manufacturing PMI Sep 41.4 vs 44.0 f/c / Services PMI Sep 52.5 vs 54.3 f/c) and lower than expected EU PMI data.
Break of pivotal supports at 1.10 zone (psychological / Fibo 61.8% of 1.0925/1.1109 / 16/17 Sep double-bottom) adds to downside risk after multiple recovery failures at falling trendline drawn off 1.1412 (25 June high).
Daily close below 1.10 handle would add to negative signals for retest of key supports at 1.0926 (3/12 Sep double-bottom).
Negative daily studies support scenario as MA are in full bearish setup and falling momentum is about to break into negative territory.
Broken 1.10 zone now offers immediate resistance, guarding converged 10/20DMA’s at 1.1030.
Res: 1.0990; 1.1000; 1.1030; 1.1056
Sup: 1.0957; 1.0926; 1.0900; 1.0863