Slobodan Drvenica
Windsor Brokers
The Euro extends sharp post-Fed fall on Thursday and fell to two-month low, additionally pressured by downbeat US weekly jobless claims data, after being deflated by hawkish Fed.
Massive Wednesday bearish daily candle (down 1.1% for the day, the biggest daily fall since 19 March 2020) weighs heavily, while today’s fresh bearish acceleration generated strong negative signal on break of 200DMA (1.1992) after Wednesday’s action registered close below psychological 1.20 support.
Bears also emerged from thick daily cloud (base lays at 1.1942) and pressure pivotal Fibo support at 1.1918 (61.8% of 1.1704/1.2266), close below which would further weaken the structure and add to negative near-term outlook.
Bearish daily techs maintain pressure with corrective action on oversold conditions to be anticipated.
Upticks should be ideally capped by broken 200DMA / 1.20 level and expected to provide better levels to re-enter bearish market.
Res: 1.1942; 1.1992; 1.2000; 1.2038
Sup: 1.1918; 1.1866; 1.1836; 1.1735
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.
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