The Euro remains in red at the start of the week after 2.2% drop last week and pressures new 2022 low (1.0071), also near Fibo 76.4% of 0.8225/1.6039 (1.0069), where bears faced headwinds on Friday.
Oversold conditions on daily chart and Friday’s hammer candle suggest that bears may struggle at this zone, however very limited upside action signals that downside pressure remains strong.
Last Friday’s jobs data showed that US labor sector remains tight and add to Fed’s decision for further aggressive approach to policy tightening that continues to lift dollar and keep Euro in strong defensive.
Firm break of Fibo support at 1.0069 would open way towards parity and risk drop towards 0.9607 (Sep 2002 low).
Res: 1.0154; 1.0191; 1.0221; 1.0275.
Sup: 1.0069; 1.0000; 0.9859; 0.9607.
