The Euro accelerated lower in early European trading on Thursday, pressured by central banks’ intervention in Asia.
The single currency is at one month low after bears took out the last obstacle at 1.1147 (Fibo 76.4% of 1.1111/1.1264) and opened way towards key support at 1.1111 (2019 low, posted on 26 Apr).
German and EU Manufacturing and Services PMI’s both fell below expectations in May, adding to negative outlook.
Bullish divergence on oversold slow stochastic warns that bears may face strong headwinds from 1.11 support zone.
Consolidative / corrective actions are expected to offer better selling opportunities while holding below falling 10SMA (1.1180) which is diverging from 20SMA after formation of bear-cross.
Res: 1.1154, 1.1180, 1.1203, 1.1224
Sup: 1.1130, 1.1111, 1.1075, 1.1000
