Euro extends weakness through key support as traders seek for safety of cash dollar
The Euro accelerated sharply lower and took out key support at 1.0891 (daily cloud base / Tenkan-sen / 50% retracement of 1.0635/1.1147), after shocking US jobless claims data further increased uncertainty and prompted traders from riskier assets into safe-haven king – US dollar.
The single currency is down slightly more than one full figure or 1% from today’s opening until now and is on track for the biggest one-day fall since 19 Mar.
Bears now pressure next pivotal support at 1.0831 (Fibo 61.8% of 1.0635/1.1147), loss of which would add to negative signals..
Today’s close below 1.0891 is minimum requirement to keep bears fully in play, while close below 1.0831 would further accelerate bears and expose 1.0756 (Fibo 76.4%), with full retracement of 1.0635/1.1147 ascend.
Res: 1.0891; 1.0913; 1.0951; 1.0967
Sup: 1.0840; 1.0831; 1.0800; 1.0756