Euro eases on stronger dollar, profit-taking; bull-trap weighs
The Euro fell in early Monday’s trading as dollar was boosted by renewed concerns over US/China trade conflict which intensified on accusations from top US officials that coronavirus emerged from China’s lab.
Traders also took some profits from past three day’s 1.5% advance that additionally weighs on the single currency.
Bearish signals are generating on daily chart on false penetration into daily cloud, unsuccessful probe above important barriers at 1.0986/1.1001 (Fibo 61.8% of 1.1147/1.0727 / 100DMA) that formed bull-trap, rising negative momentum and stochastic reversing from overbought territory.
Daily cloud (spanned between 1.0988 and 1.1065) and 100/200DMA’s weigh on near-term action.
Fresh weakness pressures pivotal support at 1.0906 (Fibo 38.2% of 1.0727/1.1017 upleg), break of which would signal further downside and expose next important levels at 1.0881 (20DMA) and 1.0865 (10DMA).
daily cloud (spanned between 1.0988 and 1.1065) and 100/200DMA’s weigh.
Res: 1.0949; 1.0973; 1.1001; 1.1032
Sup: 1.0906; 1.0881; 1.0865; 1.0838