Euro dips on weak German data, risk of recovery stall increases
The Euro fell to session low after downbeat German business climate data and probes below Friday’s low (1.2151).
Fresh weakness returns below broken Fibo barrier at 1.2166 (38.2% of 1.2349/1.2053), generating initial signal of recovery stall after last week’s rally was capped by converged 20/30 DMA’s (1.2191).
Today’s close below 1.2166 would increase downside risk and signal false break higher.
Rising negative momentum and overbought stochastic on daily chart add to negative signals, although moving averages are in mixed setup.
Sideways-moving 10DMA (1.2137) marks pivotal support, loss of which would accelerate fresh bears and form reversal signal on daily chart.
Alternative scenario sees lift and close above 1.2200 zone as bullish continuation signal.
Res: 1.2157; 1.2191; 1.2201; 1.2236
Sup: 1.2137; 1.2105; 1.2085; 1.2076