The Euro extends steep three-day fall on Tuesday and broke below rising 100SMA (1.2206) which was cracked on Monday’s strong bearish acceleration when the pair was down 0.5%.
The single currency was down around 1.5% on fall from 1.2413 high, pressuring key supports at 1.2172 (Fibo 38.2% of 1.1553/1.2555) and 1.2153 (low of multi-month 1.2153/1.2555 congestion.
Monday’s close below the base of thick daily cloud at 1.2235 was strong negative signal for final attack at 1.2172/53 pivots.
Break here would sideline broader bulls and trigger deeper correction of broader uptrend from 1.0304 (Jan 2017 low).
Multiple daily MA’s bear-crosses and firmly bearish momentum studies support further weakness, however, bears may take a breather before attacking 1.2172/53 pivots, as slow stochastic is deeply oversold on daily chart. But without firmer bullish signal so far.
Broken 100SMA marks initial barrier, guarding more significant daily cloud base, which is expected to cap upticks and keep bears intact.
Only penetration and close within cloud would sideline immediate downside risk and signal stronger correction of steep fall from 1.2413 (17 Apr high).
Res: 1.2206, 1.2235, 1.2290, 1.2308
Sup: 1.2172, 1.2153, 1.2092, 1.2054
