Euro holds in red after dovish ECB but bears may pause for consolidation
The Euro remains in red and consolidating above new seven-week low on Friday, after being hit by dovish ECB.
Thursday’s 0.3% fall resulted in eventual break of key supports at 1.1079/70 (Fibo 61.8% of 1.0981/1.1239 / daily cloud base / trendline support) that ended multi-day congestion and generated strong bearish signal.
Fresh extension lower cracked Fibo support at 1.1041 (76.4%) but so far without close below that would open way towards psychological 1.10 support.
Daily techs remain in negative setup, but oversold stochastic warns that bears may pause.
Upbeat German PMI data had little impact upon release, but may add to signals of consolidation before bears resume.
Broken pivots at 1.1070/79 now mark solid resistances, which are expected to cap upticks and maintain bearish tone.
Res: 1.1061; 1.1070; 1.1079; 1.1090
Sup: 1.1036; 1.1000; 1.0981; 1.0926