EUR/USD outlook: Bears are likely to travel further as conditions continue to worsen
|EUR/USD
The Euro hit new marginally lower 20-year low in early Wednesday, as risk assets fell in Asia, lifting the dollar to new high.
Technical studies show indicators on daily chart in full bearish setup, with oversold conditions likely to slow bears for consolidative/corrective actions, before accelerating towards targets at 0.9301 /0.9000 (June 2002 low/psychological).
Falling 5DMA offers initial resistance at 0.9655, ahead of more significant Fibo barrier at 0.9691 (23.6% of 1.0197/0.9535), violation of which would signal correction and expose pivotal barriers at 0.9788/96 (Fibo 38.2%/falling daily Tenkan-sen).
Fundamentals are also not working in favor of Euro, as inflation in the EU is expected to rise further in September (Sep f/c 9.7% vs Aug 9.1%) and probably reach a double-digit levels in the near future, while the latest polls showed that the Federal Reserve will likely raise its key interest rate much higher than recently predicted, that would additionally boost dollar and further darken Euro’s outlook.
Res: 0.9600; 0.9655; 0.9691; 0.9788.
Sup: 0.9535; 0.9402; 0.9325; 0.9301.
Interested in EUR/USD technicals? Check out the key levels
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