The Euro remains in red at the beginning of the US session on Tuesday and holds below daily cloud base, after being hit by downbeat German data earlier today. German ZEW data showed investor morale fell strongly in July and hit the lowest levels since August 2012. Political uncertainty in Germany and concerns about escalation of trade tensions were the key drivers. Negative signals are generating on probe below cloud base and south-turning slow stochastic and momentum, with close below daily cloud to complete reversal pattern on daily chart and signal further weakness. Broken cloud base now marks solid resistance which should cap and maintain negative near-term bias.
Res: 1.1762; 1.1790; 1.1840; 1.1854
Sup: 1.1710; 1.1690; 1.1665; 1.1650
