Further weakness seen on close below key Fibo support as bull-trap weighs
The Euro holds in red for the third consecutive day and probes again below cracked strong Fibo support at 1.0831 (61.8% of 1.0635/1.1147) after Thursday’s attack failed to clearly break lower.
Stronger dollar weighs on the single currency, which accelerated lower after bull-trap above 55DMA.
Converged 5/10DMA’s and 30/55DMA’s are about to form bears-crosses which would additionally weigh on bearish technical studies.
Close below 1.0831 would boost negative signals for test of 1.0768 (6 Apr low) and 1.0756 (Fibo 76.4%), violation of which would open way towards key support at 1.0635 (three-year low, posted on 23 Mar).
Bears are expected to remain intact while the price stays below 10 DMA (1.0886) which capped the action during Asian trading.
Res: 1.0886; 1.0911; 1.0951; 1.0961
Sup: 1.0817; 1.0800; 1.0768; 1.0756