Euro falls further as dollar rises on better than expected US data
The Euro extends steep fall into third consecutive day and hit new four-month low, pressuring Fibo support at 1.1778 (76.4% of 1.1602/1.2349).
Clear break of pivotal 200DMA (1.1854) added to negative signals as dollar was additionally boosted by better than expected US Q4 GDP and weekly jobless claims, adding pressure on the single currency.
Bears eye key support at 1.1694 (Fibo 38.2% of Mar 2020 / Jan 2021 1.0635/1.2349 rally) violation of which would open way for deeper correction and expose a higher base at 1.1600 zone and weekly cloud top at 1.1590.
Oversold conditions were so far ignored but some corrective action should be anticipated in the near future, probably to start with profit-taking at the end of the week.
Former low at 1.1835 and 200DMA (1.1854) reverted to strong barriers which are expected to cap upticks and keep bears intact.
Res: 1.1800; 1.1835; 1.1854; 1.1887
Sup: 1.1778; 1.1745; 1.1694; 1.1622
