The Euro extends lower in early Tuesday’s trading after Monday’s bearish Inside Day signaled fresh weakness, following repeated recovery rejection.
Additional pressure came on weaker than expected German Q2 GDP (0.6% vs 0.7% f/c) released at the beginning of European session that pushed the price below initial support at 1.1775 (hourly cloud base).
Next strong support at 1.1741 (rising 20SMA which tracks the uptrend since 27 June) is under pressure, with break here to open key near-term support at 1.1689 (09 Aug correction low) and risk an extension towards 1.1607 (Fibo 38.2% of 1.1188/1.1910 rally).
Broken hourly cloud base now acts as immediate resistance at 1.1775, followed by 10SMA at 1.1793, which caps today’s action for now and hourly cloud top at 1.1811, break of which is needed to shift near-term focus higher.
Res: 1.1775, 1.1793, 1.1811, 1.1846
Sup: 1.1741, 1.1689, 1.1640, 1.160
