Euro falls to new multi-week low following break of key supports
The Euro dips further on Friday and on track for the sixth consecutive weekly loss.
Weak risk sentiment and growing expectations that the Fed and ECB would raise their interest rates again in November, add pressure on the single currency, as markets await today’s speeches of Fed Chair Powell and ECB President Lagarde at the Jackson Hole, to get more clues about the future steps of major central banks.
Additional pressure on Euro came from German GDP data which showed that the economy stagnated in the second quarter after a winter recession and contribute to gloomy outlook, with weaker than expected country’s business morale (Ifo report) in August, further souring the sentiment.
Bears broke below 200DMA (1.0802) and Fibo support at 1.0786 (76.4% of 1.0635/1.1275) with close below these levels to confirm fresh bearish signal and increase risk of test of 1.0700 (psychological) and 1.0635 (May 31 low) in extension.
Daily studies remain bearish and support the action, with upticks to be capped by falling 10DMA (1.0862) to keep larger bears in play.
Res: 1.0802; 1.0839; 1.0862; 1.0879
Sup: 1.0733; 1.0700; 1.0667; 1.0635