EUR/USD outlook: Euro eases after strong rejection at key Fibo barrier
|EURUSD
The Euro holds in red and eases in European trading on Monday as dollar is regaining traction after being hit by fresh risk-off mode on attack on Saudi oil installations during the weekend.
Strong two-day bounce from Thursday’s post-ECB spike low (1.0925) stalled just under pivotal Fibo barrier at 1.1111 (38.2% of 1.1412/1.0925) and returned below cracked bear-trendline (drawn off 1.1412 high), forming Shooting star pattern that maintains near-term pressure.
Fresh extension lower penetrated thick hourly cloud (1.1052/18), focusing pivotal supports at 1.1039/35 (Fibo 38.2% of 1.0926/1.1109 / 10DMA) and 1.1018 (hourly cloud base), loss of which will be bearish.
Weaker momentum and stochastic approaching overbought zone on daily chart, support scenario, however, near-term action remains supported by Thursday’s long-tailed candle, formed after strong downside rejection, which may slow the pullback.
Res: 1.1078; 1.1086; 1.1111; 1.1138
Sup: 1.1035; 1.1018; 1.1000; 1.0985
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