Euro extends lower, dragged by weak pound
The Euro accelerates lower in early US session trading on Tuesday, dragged by weak pound, with stronger dollar, creating an additional pressure on the single currency.
Fresh weakness from 1.1285/84 double-top (where recovery was repeatedly capped by 30DMA) broke below cracked Fibo support at 1.1229 and thin daily cloud, currently pressuring pivotal 1.12 support zone (neckline of asymmetric H&S pattern / 9 July low / 18 June low).
Firm break here would generate strong bearish signal for extension towards key supports at 1.11 zone (26 Apr / 23 May / 30 May lows), the lowest traded since mid-2017.
Scenario is supported by very strong bearish momentum on daily chart, accompanied with south-heading RSI / Stochastic and MA’s returning to full bearish setup.
Broken cluster od daily MA’s at 1.1238/54 zone is expected to cap and keep bears in play.
Res: 1.1229; 1.1238; 1.1252; 1.1281
Sup: 1.1200; 1.1193; 1.1181; 1.1160