The Euro remains at the back foot on Tuesday and probes below strong support at 1.0653 (100 SMA / /daily cloud top), following Monday’s rejection above 1.0700 barrier.
Bearish candle with long upper shadow that was left on Monday, weighs on near-term action, as the pair was dragged by weaker British pound.
Fresh weakness also cracked 1.0641 pivot (Fibo 61.8% of 1.0524/1.0713 upleg) that would signal further downside, on clear break.
Near-term studies are weakening, while daily indicators are holding in neutrality zone and positive impact of bullishly aligned daily MA’s is fading.
Daily close below 100SMA would be seen as initial bearish signal, while return below daily cloud (cloud base lies at 1.0603 and is reinforced by daily Tenkan-sen) is needed to confirm reversal.
Conversely, return and close above 1.0700 pivot would signal fresh bullish action.
Res: 1.0653, 1.0678, 1.0700, 1.0748
Sup: 1.0631, 1.0620, 1.0603, 1.0570
