FxWirePro: EUR/USD breaks crucial supports at 1.1063, bears likely to drag upto next supports at 1.0969

The pair has just broken an important supports at 1.1063 levels with big real body candle to slip below moving average curves. Next strong support can be seen at 1.0969 levels While leading oscillators converge downward to these price dips.

RSI (14) on intraday and daily chart converging with falling prices (Currently, RSI trending at 46.9162). This leading oscillator has started evaluating the moment when prices touched 1.1060 by taking the computation of last 14 day periods the magnitude of recent gains to recent losses in an attempt to signifying the overbought pressures.

While %D crossover has been maintained on slow stochastic curve with every price dips again both on daily and intraday charts (Currently, %D line at 41.9762, while %K line at 24.7673). Stochastic on monthly curve also remains in the oversold territory but no proper trace of %K crossover that signifies weakness in the euro.

The euro has started the trading week with losses, as the pair trades at the 1.1060 in the European session. On the release front, German and euro zone manufacturing PMI disappointed at 50.2 by missing estimates at 52.0. In the US, Manufacturing PMI is scheduled for today. On Tuesday, there are two key releases - German IFO business climate and US consumer confidence.

Hence, in long run we still project below or around 1.10 for Q1 end-2016, a cyclical low of 1.08 in Q2 2016.