The Euro fell to new 20-year low (0.9873) following probe through 0.9900 round-figure support on Monday.
Negative sentiment was additionally soured as Russia halted gas supplies through the main pipeline that raised fears about further rise of energy prices and slowdown in economic growth.
With fundamental outlook darkening every day, as the winter is approaching and the Europe, highly dependent on Russian energy, faces minimal supplies or possible full stop of supplies, technical studies are in full bearish configuration and add to bearish outlook.
Sustained break of 0.99 handle would risk test of Fibonacci projections at 0.9831 (138.2% of the bear-leg from 1.0079 high) and 0.9789 (Fibo 161.8%), violation of which would unmask Jan 2001 high at 0.9595.
Near-term action should remain below converged 5/10DMA’s (0.9975) to keep bearish bias, however bears look for confirmation on close below former low at 0.9952 (Aug 23) that would generate signal of bearish continuation.
Res: 0.9952; 0.9975; 1.0000; 1.0055.
Sup: 0.9853; 0.9789; 0.9634; 0.9595.
