Growing signals of reversal still need confirmation
The Euro accelerated lower on Monday after upside attempts in early European session were capped by 1.10, now reverted to resistance.
Pullback from new 2023 high (1.1075) extends into second consecutive day and gains pace, as dollar advances on rising bets on Fed rate hike next month, while upbeat US data on Monday added to positive signals for the US currency.
Bears broke through initial supports at 1.0943/39 (Fibo 23.6% of 1.0516/1.1075 / 10DMA) and pressure round-figure support at 1.0900, ahead of next pivots at 1.0886/62 (20DMA / Fibo 38.2%) loss of which would further weaken near-term structure.
Today’s close below broken supports at 1.0943/39 to add to growing reversal signals, which still require confirmation on sustained break below pivots at 1.0862/31 (Fibo 38.2% / Apr 10 higher low).
Res: 1.0943; 1.1000; 1.1032; 1.1075
Sup: 1.0886; 1.0862; 1.0831; 1.0796