The Euro stands at the back foot in early American session and hit new low 1.1527, after better than expected US jobs data boosted dollar. ADP report showed that US private sector added 230K jobs in September, beating forecast for 187K new jobs and previous month’s upward-revised 168K figure. Initial boost to the single currency after Italy revised its budget plan faded and stronger greenback added to Euro’s existing strong bearish stance. Short-lived advance stalled on approach to 1.16 barrier, with subsequent weakness signaling strong upside rejection.
Fresh bears pressure daily cloud base, break of which would expose pivotal support at 1.1500 zone (Fibo 61.8% of 1.1300/1.1815), looking for bearish signal on close below.
Growing bearish momentum on daily chart supports negative scenario and offsets for now signals from oversold slow stochastic.
Sustained break below 1.15 pivot would open support at 1.1422 (Fibo 76.4%).
Broken Fibo 50% level marks initial resistance at 1.1558, while stronger upticks are expected to hold below 55SMA (1.1610) to keep bears intact.
Res: 1.1558; 1.1593; 1.1610; 1.1650
Sup: 1.1527; 1.1497; 1.1480; 1.1422
