EUR/USD outlook: Euro eases after weak German data, risks deeper pullback on strong US labor figures
|EUR/USD
The Euro dips further on Wednesday following a strong upside rejection on Tuesday that left a bearish daily candle with long upper shadow.
Fresh weakness was helped by a significant drop in German retail sales (Apr -5.5% vs -2% f/c), while increased optimism about accelerating US economic recovery (investors expect upbeat results from US ADP/NFP labor reports; increased activity in US services sector and further fall of weekly jobless claims) would prompt the Fed for earlier than expected policy changes that would provide strong support to the US dollar and accelerate liquidations of larger Euro longs.
Fresh bears eye pivotal support at 1.2133 (Feb 23.6% of 1.1704/1.2266/May 28 spike low), with a clear break here to generate initial reversal signal and expose key levels at 1.2051/39 (Fibo 38.2%/100DMA) which guard psychological 1.20 support.
Broken 10DMA / bull-trendline (1.2207) reverted to solid resistance and today’s close below this levels would keep in play fresh bearish bias.
Caution on the rebound and close above 10DMA / trendline that would sideline downside threats and signal another false break lower.
Res: 1.2207; 1.2226; 1.2254; 1.2266.
Sup: 1.2163; 1.2133; 1.2102; 1.2051.
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.