The Euro holds in red on Monday with fresh weakness in early European trading erasing brief recovery in Asia.
Long bearish candle which was left on Friday after repeated failure at daily Kijun-sen (1.1851) weighs on near-term action, with additional bearish pressure coming from Friday’s bearish engulfing pattern and formation of 30/55SMA bear-cross.
Monday’s action was so far capped by 4-hr cloud base (1.1774) which guards daily Tenkan-sen (1.1804).
Bears are looking for test of daily cloud base (1.1711) and possible extension towards another key support at 1.1669 (06 Oct trough) on break lower.
Political uncertainty over Catalonia keeps the Euro at the back foot but so far without stronger reaction, with markets turning focus towards ECB’s policy meeting on Thursday.
Res: 1.1774, 1.1804, 1.1829, 1.1851
Sup: 1.1751, 1.1711, 1.1669, 1.1612
