EUR/USD outlook: Close below key Fibo support could spark bigger drop
|EUR/USD
The Euro remains in red on Thursday and extends weakness to the new 2021 low, hitting the lowest level since July 2020, following nearly 1% drop on Wednesday (the third biggest daily fall this year).
Higher than expected US inflation in October boosted expectations that the Fed may start tightening earlier than expected, increasing demand for the US dollar and putting the single currency under increased pressure.
Wednesday’s massive bearish candle weighs, with strong bearish signal being generated on break and close below pivotal support at 1.1492 (50% retracement of 1.0635/1.2349 advance) that increases risk of acceleration towards 1.1290 (Fibo 61.8% of 1.0635/1.2349).
Broken Fibo support (1.1492) reverts to initial resistance (repeated daily close below to confirm break and validate barrier), with former low at 1.1525 marking next significant level which should ideally protect the upside and keep bears intact.
Res: 1.1492; 1.1525; 1.1559; 1.1586.
Sup: 1.1454; 1.1400; 1.1420; 1.1395.
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.