Bears regained traction after a brief pause around 1.1778 Fibo support and hit new lowest since early November in early European trading on Tuesday.
Failure to capitalize from bear-trap warns of deeper fall, with strong supports at 1.1700/1.1694 (round-figure / Fibo 38.2% of Mar 2020 / Jan 2021, 1.0635/1.2349 rally) coming in focus and break here to unmask next key levels at 1.1600 zone (Sep/Nov higher base / weekly cloud top).
Rising negative momentum on daily chart and double death-cross (5/200 and 10/200DMA’s) weigh on near-term action, but deeply oversold stochastic warns that bears would face headwinds.
Selling upticks towards 1.1835/45 (former low / falling 10DMA) remains favored scenario.
Only return and close above broken 200DMA (1.1863) would sideline bears.
Res: 1.1773, 1.1805, 1.1835, 1.1845.
Sup: 1.1700, 1.1694, 1.1639, 1.1602.
