EUR/USD outlook: Bulls continue to face headwinds at 200DMA as signals are mixed
|EUR/USD
Fresh advance in early European trading on Thursday probes again through cracked 200DMA barrier, offsetting, for now, negative signals from Wednesday’s strong upside rejection that left bearish daily candle with long upper shadow and repeated failure to close above 200DMA.
The picture on daily chart is slightly bullish but signals are still mixed, with Fed’s cautious approach to its policy and signals that no changes in the policy or reducing current bond purchases could be expected anytime soon, deflating dollar and giving a fresh boost to the single currency.
On the other side, concerns about Astra Zeneca’s vaccine continue to weigh and keep the action limited for now.
Daily studies show rising momentum but overbought stochastic while headwinds from 200DMA persist as falling 30DMA is on course to form bear cross with 200DMA and reinforce resistance.
Near-term action is expected to keep slight bullish bias above 20DMA (1.1846), but caution on potential third failure to close above 200DM that would increase risk of pullback.
Res: 1.1914; 1.1946; 1.1990; 1.2000.
Sup: 1.1860; 1.1846; 1.1812; 1.1798.
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.