The Euro fell to new multi-week low early Tuesday, weighed by firm dollar and recent dovish comments from ECB policymakers, who see four rate cuts in 2024.
Monday’s 0.4% drop and close below 1.0762 (Fibo 76.4% of 1.0695/1.0981 upleg), adds to bearish near-term outlook and unmasks key support at 1.0695 (2024 low, posted on Feb 14).
Strengthening negative momentum on daily chart and MA’s in bearish setup (10/200DMA death cross and converged 55/200DMA’s about to form bear-cross) point to bearish technical picture, though oversold conditions may slow bears for consolidation.
Broken pivotal supports at 1.0800 zone (daily cloud base / Fibo 61.8%) reverted to solid barriers which should keep the upside protected.
Traders look fresh signals from today’s release of German CPI data and Eurozone inflation report on Wednesday.
Res: 1.0762; 1.0804; 1.0834; 1.0861.
Sup: 1.0724; 1.0695; 1.0611; 1.0585.
