The cross fell further on Wednesday and hit new 3 1/2 low just under 115 mark, holding in red for the fifth straight day.
The Euro was hit by Tuesday’s German top court decision, with rising safe-haven demand on concerns about global recovery from the crisis caused by pandemic lockdown adds pressure on the pair. Today’s break below former low at 115.86 signaled an end of 115.86/122.86 correction and continuation of larger bear-phase from 122.86 (2020 high posted on 16 Jan), part of larger downtrend from 137.49 (Jan 2018 peak).
Studies on daily/weekly charts are in full bearish setup and supportive for further weakness, as June 2016 low (109.38) comes in focus.
Former low at 115.86 marks initial resistance, with falling 10DMA (116.14) expected to cap extended upticks and keeps bears intact.
Res: 115.86, 116.02, 116.14, 116.77
Sup: 114.55, 114.00, 113.66, 113.11
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