Upbeat German retail sales data helped the Euro to regain traction in early Monday, after 0.83% drop on Friday (the second biggest one-day loss in 2021) weakened the structure on daily chart by forming reversal pattern.
Bull-trap above Fibo barrier at 1.2102 additionally weighs on near-term action and warns of deeper fall.
Fresh bears found temporary footstep above strong supports at 1.2000 (daily cloud top/psychological/20DMA), with break here and the nearby pivotal Fibo support at 1.1979 (38.2% of 1.1704/1.2149) to risk dip towards 1.1938 (daily cloud base/200DMA).
Fading bullish momentum supports fresh bears which are expected to remain intact while holding below broken 100DMA (1.2051), former strong support, reverted to resistance. Weaker than expected German manufacturing PMI data add to negative signals.
Res: 1.2051; 1.2065; 1.2077; 1.2102
Sup: 1.2012; 1.2000; 1.1979; 1.1938
Interested in EUR/USD technicals? Check out the key levels
- R3 1.2202
- R2 1.2164
- R1 1.2092
- PP 1.2054
- S1 1.1982
- S2 1.1945
- S3 1.1872
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.