Firmer dollar and Fed/ECB divergence keep the Euro under pressure
The EURUSD pair starts the week in red, as the dollar keeps traction ahead of highly anticipated Fed policy meeting this week, while fast spread of new Omicron variant continues to sour the sentiment.
It seems that the single currency may take a fresh direction after two consecutive weekly Doji candles signaled strong indecision.
Continuation of a larger downtrend after multi-day pause is seen as more likely scenario, as daily technical studies are weakening after a brief improvement, while weekly techs remain in full bearish setup.
High expectations that the US central bank would eventually turn hawkish and announce acceleration in winding down its massive stimulus that would boost hopes for earlier than expected rate cut and widen the divergence between the ECB and the Fed, would add pressure on Euro.
Bears look for final clear break of pivotal Fibo support t 1.1290 (61.8% of 1.0635/1.2349) after multiple failure to do so in past four weeks that would open way for fresh bearish acceleration and expose targets at 1.1040/00 (Fibo 76.4% / psychological).
Res: 1.1324; 1.1364; 1.1379; 1.1400
Sup: 1.1260; 1.1227; 1.1186; 1.1100