Repeated close below key Fibo support to confirm strong bearish signal and risk drop towards 1.10 zone
The Euro remains heavy in early Monday’s trading and attempting to sustain break below pivotal Fibo support at 1.1290 (61.8% of 1.0635/1.2349 ascend), following initial bearish signal on last Friday’s marginal close below this level.
Two consecutive large bearish weekly candles (the pair was down 1.4% last week) weigh heavily, adding to bearish daily techs (MA’s in full bearish setup and momentum deeply in the negative territory).
Bears need repeated close below 1.1290 to confirm negative signal and open way for acceleration towards key supports at 1.1040/1.1000 (Fibo 76.4% / psychological).
Risk aversion on growing concerns about Covid situation in Europe keeps the single currency under pressure and boosts safe-haven dollar, also inflated by the latest comments from Fed officials, who said that faster pace of stimulus tapering would help economic recovery and increase possibility of earlier start of raising interest rates.
Last Thu/Fri tops at 1.1373 (reinforced by falling 10DMA) offer solid resistance which should keep the upside protected.
Res: 1.1316; 1.1373; 1.1418; 1.1492
Sup: 1.1250; 1.1200; 1.1168; 1.1100