The Euro stands at the back foot on Monday and pressuring 1.1600 support, which guards post ECB’s multi-month low at 1.1574, posted on 27 Sep. Last Friday’s close in red which formed bearish Outside Day pattern, weighs on near-term action for renewed attempt at 1.1574 pivot and extension of the downleg from 1.2092.
Completion of H&S pattern on daily chart was strong bearish signal, however, the pair needs clear break below 1.1574/1.1690 congestion to confirm bearish continuation.
Sustained break below 1.1574 would open next strong support at 1.1510 (Fibo 38.2% of 1.0570/1.2092 rally).
Falling 10SMA which formed bear-cross with 100SMA last week continues to cap upside attempts and offers solid resistance at 1.1662.
Alternative scenario requires close above 1.1690 (last Friday’s high/top of near-term consolidation range) to sideline immediate bearish threats, with lift above 1.1705/27 (daily Tenkan-sen/Kijun-sen) needed to signal stronger recovery.
Res: 1.1628, 1.1662, 1.1690, 1.1705
Sup: 1.1595, 1.1574, 1.1510, 1.1445
