Euro falls on risk aversion / weaker pound
The Euro fell on Monday morning (down 0.45%) dragged by weaker pound on lockdown talks and fresh risk aversion.
Larger bulls were strongly rejected at 1.20 barrier, but remained in play as double weekly Doji signaled strong indecision, keeping the pair in extended consolidation.
Fresh weakness increases risk of deeper fall that would risk test of key 1.1700 support zone (top of rising daily cloud / Aug/Sep range low, also near Fibo 38.2% of 1.1168/1.2011 ascend).
Daily studies weakened (the price moved below converged 10/20/30DMA’s, 14-d momentum continues to move deeper into negative territory and daily RSI turned south) contributing to negative signals.
Initial resistance lays at 1.1824 (10DMA), followed by 1.1841 (20DMA) but only firm break above 1.1874 (daily Kijun-sen) would neutralize bears.
Res: 1.1824; 1.1841; 1.1874; 1.1900
Sup: 1.1752; 1.1737; 1.1722; 1.1711