Euro continued to weaken on Monday. Due to the worsening of the epidemic situation, Austria has re-implemented a complete blockade to contain the epidemic. Germany said it may follow suit. Lagarde from European Central Bank reiterated that it is unlikely to raise interest rates in 2022. Last week, Euro performed extremely poorly, hitting a 16-month low.
From a technical perspective, Euro’s weekly candle shows a downward trend. The daily graph continued to hit new lows, and the bulls have failed to show signs of stabilization. On H4 graph, EURUSD candle shows the gradual formation of the ladder bottom pattern, and RSI indicator is around 30 which is a strong bearish sign. Overall, prioritise SELL. The chart below is showing the key point and the estimated trend, the deciding point is near 1.1300.
Resistance：1.1300-1.1330-1.1370
Support：1.1250-1.1230-1.1200
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