EURUSD was sharply down on Monday morning after weaker than expected German and French PMI’s (German manufacturing PMI at 40.3 warns of recession) soured sentiment.
Fresh weakness adds to reversal signals from recent repeated strong upside rejections on approach to pivotal 1.1200 barrier (Aug 26 high / round-figure).
Bears cracked lower pivots at 1.1100 zone (50% retracement of 1.1021/1.1189 upleg / rising 10 DMA) but need to register a clear break lower to signal continuation and expose next targets at 1.1073/46 (Fibo levels 61.8% and 76.4%).
However, larger picture is bullish and broader uptrend to remain in play as long as floor of recent consolidation range / psychological (1.1000) stays intact.
In such scenario the pair would hold in prolonged consolidation, before bulls regain strength for fresh attempt through 1.1200.
Res: 1.1117; 1.1145; 1.1167; 1.1189.
Sup: 1.1087; 1.1073; 1.1046; 1.1000.
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