Euro loses ground on stronger dollar and new record high EU inflation
The Euro accelerated lower on Monday as increase dollar longs in anticipation of another hawkish action by Fed on Nov 2 policy meeting and weighed by fresh rise of inflation in the Eurozone that threatens of deepening of crisis in the bloc.
Fresh extension of pullback from new highest since Sep 13 (1.0093) which paused last Friday and breaks through daily Tenkan-sen (0.9899), pressuring next pivot at 0.9880 (Fibo 38.2% of 0.9535/1.0093 recovery).
The action is supported by fading bullish momentum and south-heading stochastic / RSI and pressured by falling daily cloud, which capped recovery leg last week.
Sustained break of 0.9880 Fibo support is needed to confirm bearish near-term stance and confirm a double-top at 1.0088/93 that would risk deeper drop towards 0.9814 (50% retracement / daily Kijun-sen) and 0.9748 (Fibo 61.8%) in extension.
Res: 0.9899; 0.9926; 0.9961; 1.0000
Sup: 0.9880; 0.9843; 0.9814; 0.9748