EURUSD – close below key Fibo support on Monday reinforces bearish bias
The Euro holds in red in early European trading after brief recovery attempts were capped by broken Fibo support (61.8% of 1.1553/1.2555 ascend).
Monday’s close below here was bearish signal, along with probes through round-figure 1.19 support, clear break of which would spark fresh acceleration lower and open targets at 1.1816 (22 Dec low) and 1.1790 (Fibo 76.4%).
Bearish techs support scenario as 14-d momentum continues to trend lower and converged 10/200SMA’s are about to form death-cross which would generate fresh bearish signal and increase pressure.
Monday’s high at 1.1978 marks initial resistance, guarding strong barriers at 1.20 zone (psychological resistance / 200SMA) and only break here would neutralize immediate downside threats and signal stronger correction.
Mixed data from Germany (negative exports / imports; better than expected IP and widened trade surplus) made no significant impact on the euro.
Focus turns towards release of EU economic forecasts and announcement of US decision about Iran’s nuclear deal, due later today (18:00 GMT).
Res: 1.1938; 1.1978; 1.2016; 1.2052
Sup: 1.1897; 1.1846; 1.1816; 1.1790