Fresh virus fears knocked risk sentiment and sent Euro sharply lower on Monday.
Pullback from new 2 ½ year high (1.2272) so far retraced nearly 61.8% of 1.2058/1.2272 upleg and broke strong support at 1.2158 (10DMA).
Steep fall of 14-d momentum fuels fresh bears for extension towards pivotal supports at 1.2086/58 (rising 20DMA / Dec 9 higher low) break of which would generate initial reversal signal and open way for deeper correction of 1.1602/1.2272 rally, with next key points at 1.2016/00 (Fibo 38.2% / psychological) expected to come in focus.
Today’s close below 10DMA is needed to confirm fresh bearish stance, with thick hourly cloud (spanned between 1.2198 and 1.2250) weighing on near-term action.
Res: 1.2165, 1.2190, 1.2201, 1.2234.
Sup: 1.2125, 1.2100, 1.2086, 1.2058.
