EURUSD – bears approach initial target at 1.1790 and could extend to next key support at 1.1709; falling 10SMA to cap upticks
The Euro remains under strong pressure on Wednesday and extends weakness to new multi-month lows.
President Trump’s decision to pull out from a nuclear deal with Iran pushed dollar higher, while concerns about Italian political turmoil additionally weighs on the single currency.
Fresh extension of steep downtrend from 1.2413 approaches initial target at 1.1790 (Fibo 76.4% of 1.1553/1.2555 ascend) and may extend towards next key support at 1.1709 (Fibo 38.2% of larger 1.0340/1.2555 bull-phase).
Meanwhile, bears may take a breather ahead of 1.1790 target as initial positive signals are developing on daily chart (14-d momentum turned sideways; oversold RSI and slow stochastic and bullish divergence on slow stochastic).
Falling 10SMA (1.1982) which formed death-cross with 200SMA, is expected to cap upticks and keep bearish structure intact.
Res: 1.1870; 1.1936; 1.1982; 1.2016
Sup: 1.1816; 1.1790; 1.1737; 1.1709