EURUSD – bears tighten grip after break of another strong support

EURUSD remains firmly in red and hits two-month low on Monday morning, in extension of Friday’s 0.8% drop (the biggest daily loss since Jan 2).

Fresh weakness broke through significant support at 1.0776 (100DMA) increasing pressure on next pivotal supports at 1.0723/12 (Dec 8 higher low / Fibo 61.8% of 1.0448/1.1139 rally), violation of which to open way for further losses.

Daily studies turned to full bearish setup, with formation of a double death-cross (5/200 and 10/200DMA’s) generating fresh bearish signals and adding to negative near-term outlook.

Broken 100DMA and Fibo 50% (1.0775/93) reverted to resistances which should ideally keep the upside protected, though larger bearish structure will remain unharmed if extended upticks stay below the base of thick daily cloud (1.0828).

Res: 1.0775; 1.0793; 1.0828; 1.0875
Sup: 1.0723; 1.0712; 1.0660; 1.0611