Extension of post-Fed fall pressures psychological 1.10 support
The Euro fell to the lowest levels in over two years against dollar in early Thursday’s trading, in extension of strong post-Fed fall on Wednesday, when the pair was down 0.72%.
The single currency was hit by hawkish stance from the Fed, as the central bank cut interest rates by 0.25% as widely expected and for the first time in over a decade, but Fed Chairman Powell poured a cold water over expectations for further rate cuts in coming months that boosted dollar across the board.
Strong bearish signal was generated on Wednesday’s eventual break and close below key 1.11 support zone )also the lower boundary of bear-channel from 1.1412 high), as the action left big bearish daily candle that marked the biggest daily fall since 7 Mar.
Bears pressure psychological 1.10 support, violation of which would open targets at 1.0960 zone (the neckline of asymmetric H&S pattern / monthly cloud base, with stronger bearish acceleration to possibly extend towards 1.0863 (Fibo 76.4% of 1.0340/1.2555 ascend).
Very strong bearish momentum adds to negative outlook, however, bears may show hesitation at 1.10 support, as daily RSI / Stochastic are about to break into oversold territory.
Focus turns towards US weekly jobless claims and Manufacturing PMI, due today and another key event of the week, US jobs data, which are eyed for fresh signals
Res: 1.1073; 1.1100; 1.1140; 1.1162
Sup: 1.1032; 1.1000; 1.0960; 1.0900