The Euro continues to trend lower and hit new 2024 in early Friday, as steep fall extends into third consecutive day, keeping the pair on track to the biggest weekly loss since the second week of May 2023.
The single currency stumbled after hotter than expected US inflation data, released earlier this week, with ECB’s more dovish than expected stance regarding monetary policy increasing pressure on the single currency.
Sustained break of pivotal 1.0700 support zone (Fibo 61.8% of 1.0448/1.1139 / psychological / former 2024 low) is likely to spark further weakness.
Bears eye next targets at 1.0628/11 (100WMA / Fibo 76.4%) and may extend towards key med-term support at 1.0448 (3 Oct 2023 low).
Bearish daily technical contribute to negative outlook, with limited corrective action on oversold conditions, likely to offer better levels to re-enter bearish market.
Broken pivotal supports at 1.0695/1.0724 zone reverted to initial resistances, with upticks to be capped under falling daily Tenkan-sen (1.0776) to keep bears in play
Res: 1.0695; 1.0724; 1.0762; 1.0776.
Sup: 1.0628; 1.0611; 1.0585; 1.0500.
