The cross is consolidating above new multi-month low at 0.8557, posted on Monday, with near-term action being slightly underpinned by unexpected improvement in German ZEW figure (Nov -2.1 vs -13.2 f/c, but the indicator remains in negative territory) and mixed UK jobs data.
Monday’s failure to close below cracked three-week range low (0.8575) suggests the price may stay in current congestion, however, bias remains with bears.
Daily techs remain in bearish configuration, with formation of daily 10/20DMA bear-cross, weekly bearish flag and strong negative momentum on weekly chart, keeping focus at the downside.
Sustained break below 0.8575 pivot would open way towards key supports at 0.8489/76 (6 May low / monthly cloud top).
Rising 200WMA (0.8663) marks pivotal barrier and only firm break here would put bears on hold.
Res: 0.8605, 0.8618, 0.8663, 0.8696
Sup: 0.8575, 0.8557, 0.8489, 0.8476
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