Limited consolidation is expected to precede fresh bearish extension
The Euro is holding within narrow consolidation above new nearly three-year low (1.0827) in European trading on Monday, but strong bearish pressure remains, following 2.35% fall in past two weeks.
Two consecutive long red weekly candles weigh heavily and add to negative outlook, as strong concerns about weakening EU economy growth keeps the Euro under pressure.
Deeply oversold daily indicators suggest a pause in strong downtrend, however, limited recovery is expected to provide better opportunities to re-enter bearish market.
Broken Fibo support at 1.0863 (reinforced by falling 5DMA) and Thursday’s high (1.0888) should ideally cap upticks and guard falling 10DMA (1.0917), break of which would sideline bears for stronger correction.
Res: 1.0863; 1.0888; 1.0917; 1.0929
Sup: 1.0827; 1.0820; 1.0800; 1.0777