EUR/USD: Double upside rejection and soured risk sentiment shift near-term focus lower
|EUR/USD
The Euro dipped to three-day low on Thursday, seeing increased risk of deeper pullback after bulls showed strong signals of stall by leaving two consecutive inverted hammer candles (Tue/Wed).
Daily RSI turned south, warning of loss of momentum and fresh weakness cracked 10DMA (1.1831).
Fresh bears faced headwinds from strong support provided by daily cloud top that temporarily stopped fall, but fundamentals work against the Euro as risk sentiment fades on raging coronavirus and new restrictions and signals that the ECB may further ease policy in December as inflation expectations are falling again.
Bears look foe initial signal on close below 10DMA, with penetration of daily cloud (spanned between 1.1811 and 1.1762) to further weaken near-term structure.
The pair may hold in extended consolidation if failing to clear 10DMA, but near-term bias is expected to remain negative as long the action stays below cracked Fibo barrier at 1.1878 (76.4% of 1.1919/1.1745 bear-leg).
Res: 1.1856; 1.1878; 1.1893; 1.1919
Sup: 1.1831; 1.1811; 1.1796; 1.1784
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.