EUR/USD outlook: Bears are taking a breather after last week's 2% fall
|EUR/USD
The Euro is consolidating within a narrow range in early Monday’s trading following last week’s almost 2% drop, sparked by hawkish Fed.
Friday’s close below key Fibo support at 1.1918 (61.8% of 1.1704/1.2266) added to bearish signals generated on break of other important technical supports.
Fresh bears found footstep just above the top of thick ascending weekly Ichimoku cloud (1.1833) with oversold daily studies suggesting corrective action before bears resume, as technical picture is negative and dollar is set to resume rally.
Broken Fibo support at 1.1918 and daily cloud base at 1.1942 offer solid resistances which should ideally cap correction, with key barriers at 1.1992/1.2000 (broken 200DM/psychological) expected to cap extended upticks and offer better selling opportunities, for push towards 1.1704 (Mar 31 low).
Only return and close above cloud top (1.2053) would neutralize bears.
Res: 1.1918; 1.1942; 1.1992; 1.2033.
Sup: 1.1833; 1.1795; 1.1737; 1.1704.
Interested in EUR/USD technicals? Check out the key levels
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.