The Euro holds bearish near-term bias and pressuring key supports at 1.1432 (09 / 19 Oct lows) on Tuesday, following bearish close on Monday after recovery attempts were capped by daily cloud base (1.1545).
Near-term sentiment is weighed by political uncertainty in Europe over Italy’s budget issue, as tensions between Rome and Brussels could rise on fears that crisis could spill over through the bloc.
Bearish setup of daily MA’s adds to negative outlook, however, north-heading momentum suggests that bears could be delayed for extended congestion above 1.1432 base.
Daily cloud is thickening and marks strong barrier which is expected limit upside attempts.
Falling 5SMA marks initial resistance at 1.1481, with selling upticks scenario favored under 10SMA (1.1522) which guards upper pivots at 1.1540/45 (falling 20SMA / daily cloud base).
Res: 1.1481, 1.1497, 1.1522, 1.1545
Sup: 1.1432, 1.1422, 1.1394, 1.1366
