EURUSD – downside remains at risk
The Euro remains in red on Tuesday and maintains downside risk for final attack at 1.1574 pivot (27 Oct low).
Fresh easing offsets signs of indecision ahead of key supports, following yesterday’s close in long-tailed Doji.
Negative daily techs favor further weakness with falling 10SMA (1.1644) maintaining pressure.
In addition, falling 20SMA is heading towards 100SMA and about to form bearish cross which would reinforce negative outlook.
Widening hourly cloud (spanned between 1.1626 and 1.1642) also weighs on near-term action.
However, risk of prolonged consolidation above 1.1574 pivot exists as slow stochastic is entering oversold territory on daily chart.
Expect upside attempts to be capped by 10SMA to keep bears intact for final break through 1.1574 and extension towards 1.1510 target (Fibo 38.2% of 1.0570/1.2092 rally / rising weekly Kijun-sen).
Conversely, lift above 10SMA is needed to sideline immediate bearish threats, while sustained break above 1.1700 resistance zone would neutralize and generate initial signal of recovery.
ECB President Draghi’s speech and EU Retail Sales for September are in focus today.
Res: 1.1624; 1.1644; 1.1690; 1.1705
Sup: 1.1574; 1.1510; 1.1445; 1.1400