EUR/USD Outlook: Bears face headwinds from strong 1.12 support zone but outlook remains negative
|EURUSD
The Euro is consolidating above new one-week low at 1.1199, following 0.42% fall on Tuesday, when the single currency was dragged by weaker pound.
Fresh bears cracked important s 1.12 support zone, but faced strong headwinds and holding for now above pivotal supports at 1.1200/1.1181 zone (H&S neckline / lows of 9 July and 18 June).
Daily studies remain in negative setup but strong bearish momentum is losing traction, which suggests bears may stay on hold before renewed attack at 1.1200/1.1181 pivots.
Firm break here would open way for test of key supports at 1.11 zone.
Upticks are expected to ideally hold below barriers at 1.1227/37 (base of thin daily cloud / converged 10/55DMA’s) to keep bears intact, while break here and 100DMA (1.1250) would sideline bears for stronger correction towards key n/t barriers at 1.1280/90 zone (double-top / converged 20/30 DMA’s).
EU inflation data are due in a while, with forecasts remaining unchanged from the previous month.
Res: 1.1219; 1.1227; 1.1237; 1.1250
Sup: 1.1200; 1.1193; 1.1181; 1.1160
Interested in EURUSD technicals? Check out the key levels
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