The Euro stands at the back foot at the beginning of the week and maintains overall bearish bias after last week’s recovery attempts were repeatedly capped by daily cloud base.
Stronger dollar on positive US jobs data and China’s decision to loosen the policy added to negative outlook on Monday.
Fresh bears are probing again below cracked pivotal support at 1.1497 (Fibo 61.8% of 1.1300/1.1815 ascend) for renewed attack at 1.1563 double-bottom (03/04 Oct low) to signal continuation of downtrend from 1.1815 (24 Sep high) towards 1.1422 (Fibo 76.4%).
Strong bearish momentum on daily/weekly charts favors further downside, with negative signal generated on Friday’s close below the base of thick weekly cloud which acted as strong support in past couple of weeks, supporting scenario.
Selling upticks remains favored scenario with 1.1545 resistance (daily cloud base) expected to cap.
Alternative scenario requires break and close above daily cloud (1.1545/1.1577) to ease bearish pressure.
Res: 1.1529, 1.1545, 1.1577, 1.1593
Sup: 1.1483, 1.1463, 1.1422, 1.1394
