The Euro weakened further in early European trading on Tuesday, as Monday’s recovery following initial reversal signal on Friday’s long-tailed Doji, was short-lived.
Bears regained traction after recovery peaked at 1.0933, as subsequent weakness closed again below broken Fibo level at 1.0895, keeping near-term action in red and eyeing key support at 1.0806 (Mar 7 low).
Daily MA’s remain in full bearish setup although 14-d momentum edged higher but remaining in the negative territory and keeping the downside at risk.
Violation of Friday’s spike low at 1.0836 would open way for test of 1.0806 pivot, which guards Mar 2020 low at 1.0635.
Slightly better than expected German economic sentiment data may slow bears, bias is expected to remain firmly bearish while the action holds below falling 10 DMA (1.0954).
Only sustained breakthrough psychological 1.10 barrier would provide relief and allow for stronger rebound.
Res: 1.0895; 1.0954; 1.0984; 1.1000.
Sup: 1.0853; 1.0836; 1.0806; 1.0766.
