The Euro came under pressure in early European trading on Tuesday and eased from Asian high at 1.1489, shifting near-term risk lower, after Monday’s positive close signaled that strong two-day pullback may be over.
Solid supports at 1.1447 (10SMA), 1.1434 (Fibo 38.2% of 1.1215/1.1569) and 1.1422 (20SMA) underpin for now but the structure could weaken on break lower.
South-heading daily momentum and slow stochastic support negative scenario, as the single currency could be pressured further if sterling falls after Brexit vote.
Break below 1.1447/22 support zone would risk bearish extension towards 55SMA (1.1380) and Fibo 61.8% support at 1.1350.
Conversely break and close above daily cloud would sideline downside risk and shift focus higher.
Res: 1.1474, 1.1486, 1.1540, 1.1569
Sup: 1.1447, 1.1434, 1.1422, 1.1380
