Strong bearish bias below 1.10 pivot
The Euro stays in red on Monday but trading within narrow range, following last 1.45% fall and weekly close below psychological 1.10 support, which was taken out on Friday.
The sentiment remains negative on rising concerns about German economy’s slowdown (today’s release of weaker than expected German Manufacturing PMI (Aug 43.5 vs 43.6 f/c) and hard Brexit that keeps the single currency under increased pressure.
Massive weekly bearish engulfing add to negative weekly techs, with additional negative signal being generated on break below thick monthly cloud.
Daily studies are oversold that may signal a pause in current fall (no clear signs of bounce seen for now) which is expected to offer better selling opportunities.
Broken 1.10 pivot and former low of 1 Aug (1.1027) now mark initial resistances, with extended upticks expected to stay below falling 10DMA (1.1069) to keep bears in play, for extension towards 1.0863 (Fibo 76.4% of larger 1.0340/1.2555 (Jan 2017/Feb 2018) ascend.
Res: 1.1000; 1.1027; 1.1037; 1.1069
Sup: 1.0963; 1.0922; 1.0900; 1.0863