The Euro accelerated lower at the beginning of the European session after holding within narrow range in Asia on Tuesday.
Near term tone remains negative following Monday’s close in red, despite strong downside rejection at strong support at 1.1463 (double-bottom).
Monday’s close below 1.1497 pivot (Fibo 61.8% of 1.1300/1.1815 ascend) was bearish signal, as former support now reverted to resistance and caps today’s action for now.
Daily techs maintain strong bearish momentum for further weakness, as daily cloud is thickening and weighs.
Firm break below 1.1463 is needed to confirm bearish continuation and expose next target at 1.1422 (Fibo 76.4% of 1.1300/1.1815).
Broken Fibo support at 1.1497 marks initial resistance (reinforced by falling 5SMA), followed by Monday’s high at 1.1529 and key barrier at 1.1545 (daily cloud base) which is expected to cap extended upticks and maintain bearish bias.
Only sustained break above daily cloud (spanned between 1.1545 and 1.1577) would sideline bears and signal higher base at 1.1463.
Today’s calendar is light with German trade data (trade surplus widened in Aug but exports and imports fell below forecasts) being the sole release from the EU, suggesting that techs and news would be pair’s key drivers.
Res: 1.1502, 1.1529, 1.1545, 1.1577
Sup: 1.1463, 1.1422, 1.1394, 1.1366
