EUR/USD outlook: Euro extends lower after Fed; key supports coming in focus
|EUR/USD
The Euro remains offered in early Thursday's trading and extended weakness to five-week low (1.1737).
The pair holds in red for the third straight day, following multiple upside rejections that left daily candles with long upper shadows, pointing to recovery stall and reversal.
Upbeat report from Fed, which pointed economic recovery and upgraded its projections, although sticking to prolonged ultra-accommodative policy, lifted the dollar and deflated the single currency.
Today's probe below pivotal supports at 1.1754/52 (21 Aug/9 Sep lows) was bearish signal which may open way towards key supports at 1.1700 zone (1.1711, recent range low of 12 Aug/1.1695, daily cloud top and 1.1689, Fibo 38.2% of 1.1168/1.2011 rally). Break of these supports would generate initial reversal signal and risk deeper correction of Mar/Aug 1.0635/1.2011 ascend. Rising bearish momentum and descending stochastic and RSI on daily chart, support the notion, however, fresh bears are expected to face strong headwinds from key supports and rising thick daily cloud.
The cluster of daily MA at 1.1824/36 zone marks initial resistance and near-term action is expected to remain biased lower while these barriers cap.
Alternatively, break and close above would ease bearish pressure and keep the price in the middle of the range. After Fed delivered its verdict, markets focus on today's key events: Eurozone inflation report for August, BoE's interest rate decision and US jobless claims.
Res: 1.1824; 1.1836; 1.1874; 1.1900
Sup: 1.1752; 1.1737; 1.1711; 1.1695
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.