The cross consolidates above new 3 1/2 month low at 0.8776 on Monday, with limited upside attempts, as Euro comes under fresh pressure on Italian budget concerns.
Steep fall in past two week’s when the pair was down 2.1%, with break below weekly cloud and close below pivotal support at 0.8803 (Fibo 61.8% of 0.8620/0.9098 ascend), adds to negative outlook.
Daily MA’s in full bearish setup and rising bearish momentum, further support negative scenario.
Close below 0.8803 Fibo support would expose 0.8733 (Fibo 76.4%) and 0.8697/0.8680 (29 May/26 Apr troughs) in extension.
Broken 200SMA (0.8837) is expected to cap upticks and maintain bearish bias.
Res: 0.8807; 0.8837; 0.8869; 0.8887
Sup: 0.8776; 0.8733; 0.8680; 0.8620
