The Euro moves lower in early European trading on Tuesday after strong offers at 1.18 zone repeatedly limited upside attempts.
Monday’s trading ended in Hammer candle, following strong rejection on first attempt at key 1.1709 support (Fibo 38.2% of 1.0340/1.2555 rally), but little impact was seen so far, as falling 5SMA reinforced 1.18 resistance zone and repeatedly capped recovery attempts.
Positive momentum is conflicting bearish MA’s which could result in extended consolidation as 1.1709 marks pivotal support and further hesitation here cannot be ruled out.
The pair would stay within 1.1710/1.1800 range before establishing in fresh direction.
Overall bearish structure favors further downside on firm break below 1.1709, for test of next significant support at 1.1675 (weekly cloud top) and possible stronger bearish acceleration on break.
Falling 5SMA marks immediate resistance at 1.1786, followed by pivots at 1.1822 (former low of 09 May / Fibo 38.2% of 1.1996/1.1716 bear-leg) and 1.1840 (falling 10SMA).
Firm break above these barriers is needed to neutralize immediate downside risk and signal further recovery.
Res: 1.1786, 1.1822, 1.1840, 1.1856
Sup: 1.1756, 1.1716, 1.1709, 1.1675
