The Euro was in red in Asia on Monday, probing below rising 10SMA (1.1173) and pressuring Friday’s low at 1.1160.
Near-term studies turned negative and keep the downside at risk as slow stochastic on daily chart is heading south and showing more room at the downside.
Also, red weekly candle with long upper shadow weighs on near-term action.
Firm break below Friday’s low would risk extension towards next key support at 1.1100 (Fibo 38.2% of 1.0839/1.1268 upleg) where extended correction should be ideally contained.
The pair is currently ridding on the fourth (corrective) wave of five-wave cycle from 1.0820 (24 Apr low) which should ideally end at 1.1100 zone and support scenario of fresh upside attempts after correction as overall structure is bullish.
Upside targets remain at 1.1268 (23 May high) and 1.1299 (09 Nov 2016) post US election high).
Alternatively, firm break below 1.1100 pivot would risk deeper correction and expose Fibo supports at 1.1053 and 1.1000.
ECB President Mario Draghi is due to speak later today and may move the pair if he says something new and apart from his usual rhetoric.
Res: 1.1183, 1.1234, 1.1250, 1.1268
Sup: 1.1160, 1.1100, 1.1086, 1.1053
