Fresh weakness breaks below 200DMA which held bears for more than one week
The cross eventually broke below key support at 0.8746 (200DMA / Fibo 61.8% of 0.8281/0.9498 rally) which kept the action in past seven days, containing multiple attacks.
Fresh risk aversion pushed the Euro lower in the US session on Monday, while sterling kept firm tone and holding around cracked 1.25 mark against the dollar.
Close below 200DMA / key Fibo support , above which bears paused for over one week, would signal continuation of larger downtrend from 0.9498 (19 Mar peak).
Immediate support at 0.8697 (55DMA) is under pressure and break here would unmask 100DMA (0.8606) and Fibo 76.4% (0.8569).
Caution on bounce and repeated close above 200 DMA that would signal false break and extended range trading, but the action is expected to remain biased lower while range top (0.8863) stays intact.
Res: 0.8746; 0.8797; 0.8863; 0.8890
Sup: 0.8697; 0.8621; 0.8606; 0.8569