The Euro holds in red for the third straight day and accelerated lower at the beginning of European session on Tuesday, to crack key support at 1.1313 (Fibo 61.8% of 1.1215/1.1472 / 200WMA), which contained downside attempts in past five weeks.
Negative sentiment was boosted by comments from President Trump, who said he expects to proceed with raising tariffs in Chinese imports. The comments poured cold water on expectations of US/China trade deal and increased safe-haven demand, boosting US dollar.
Traders are awaiting comments from Fed about policy direction, which could add to greenback’s bullish stance, if minutes signal rate hike in Dec. Euro’s near-term bulls off 1.1215 are giving way, with strong bearish signal expected on daily close below 200WMA/Fibo support that would open way towards next key supports at 1.1215 (12/13 Nov double-bottom) and 1.1186 (Fibo 61.8% of 1.0340/1.2555 rally). Monday’s bearish candle with long upper shadow which signaled strong upside rejection, weighs along with rising bearish momentum and daily MA’s in firm bearish setup. Base of thick 4-hr cloud marks strong resistance at 1.1343, ahead of converged 10/20SMA’s at 1.1362, which are expected to limit upticks and maintain bearish bias.
Res: 1.1343, 1.1362, 1.1382, 1.1421
Sup: 1.1300, 1.1276, 1.1215, 1.1186
