Weekly close below key Fibo support was bearish signal
The Euro is consolidating within a narrow range in early Monday following strong acceleration lower last Thu/Fri and the biggest weekly loss since mid-February.
The pair also registered a weekly close below pivotal Fibo support at 1.0874 (38.2% of 1.0516/1.1095 rally), which generated bearish signal and further soured near-term sentiment.
Bears cracked rising 55DMA (1.0851) but find temporary footstep here and likely to consolidate as daily stochastic is oversold.
We are at the breakpoint, with sustained break of 1.0874/51 supports to open way for further weakness towards next strong supports at 1.0812/05 (top of rising and thickening daily cloud / 50% retracement of 1.0516/1.1095).
Daily studies maintain negative momentum and converged daily Tenkan-sen/Kijun-sen are about to form a bear-cross and reinforce near-term bearish bias.
Upticks should ideally stall under last Friday’s high (1.0935) to keep near-term bearish structure intact and offer fresh selling opportunities, while stronger acceleration higher and close above 1.0965 (daily Tenkan/Kijun-sen) would sideline bears and signal possible end of correction, which will require confirmation on lift and close below psychological 1.10 barrier.
Res: 1.0914; 1.0935; 1.0960; 1.1000
Sup: 1.0831; 1.0812; 1.0774; 1.0737