The Euro collapsed on Tuesday, registering daily loss of 2% until now, being under strong pressure from downbeat German data and rising demand for safe-haven dollar.
Today’s bearish acceleration took out several important supports, starting from 200DMA (1.1097), followed by converged 100/55 DMA’s and Fibo 61.8% (1.1065/51) and psychological 1.10 level.
Bears now pressure support at 1.0947 (Fibo 76.4% of 1.0778/1.1494), the last obstacle en-route to 20 Feb low at 1.0778.
ZEW data released today showed German investor morale slumped to the levels last seen in 2008 on fears of the size of negative impact from corona virus that triggered red alert for the economy of Germany and the bloc too.
The pair is on track for the biggest one-day fall since 14 June 2018, with daily close below abovementioned levels to generate strong bearish signal.
Broken 1.10 level now marks initial resistance, with broken Fibo support / 55DMA (1.1051) expected to cap upticks and keep bears in play.
Res: 1.1000; 1.1051; 1.1063; 1.1097
Sup: 1.0947; 1.0900; 1.0877; 1.0830