Risk off mode keeps euro under pressure
The Euro holds in red for the third straight day and accelerates below 1.18 handle in early Monday.
Quick spread of Delta variant of coronavirus sours the sentiment and fuels fresh risk aversion that keeps the Euro under pressure.
Negative daily studies confirm bearish bias, with last week’s lows (1.1772) being under pressure, with break here to open way for test of key supports at 1.1704/1.1694 (2021 low, posted on Mar 31 / Fibo 38.2% of 1.0635/1.2349 rally).
Rising negative momentum on weekly chart adds to downside risk, as loss of 1.1704/1.1694 triggers would generate major reversal signal.
Falling 10 DMA tracks the action since early June and marks initial resistance at 1.1820, which should cap the upticks.
Only lift above 20DMA (1.1859) and 1.1881 (highs of July 9/12) would sideline bears.
Res: 1.1820; 1.1847; 1.1859; 1.1881
Sup: 1.1772; 1.1737; 1.1704; 1.1694