EUR/USD outlook: Euro extends pullback after failure at 1.20 barrier and eyes key fibo supports
|EUR/USD
The Euro extends pullback from new 2020 high on Wednesday (so far down 0.31% since opening today), following strong rejection at psychological 1.20 barrier.
Bulls peaked at 1.2011 but breach was short-lived and subsequent pullback left bearish daily candle with long upper shadow that made initial bearish signal.
Traders booked some profits on massive longs that added pressure on the near-term action.
Sort of bull-trap pattern that is forming on daily chart (although 1.20 is not a technical barrier) could contribute to current scenario, signaled by daily indicators during past few days. Fading momentum and south-heading stochastic/RSI add to negative signals.
Fresh bears pressure initial supports at 1.1855/38 (10/20DMA's) which guard more significant double Fibo's at 1.1825/22 (61.8% of 1.1711/1.2011/broken 61.8% of 1.2555/1.0635), which should contain dip and sideline risk of deeper pullback.
Key supports are higher base at 1.1700 zone and Fibo 38.2% of 1.1168/1.2011 (1.1689), with break here to signal reversal and neutralize bulls.
Res: 1.1888; 1.1928; 1.1965; 1.2000
Sup: 1.1855; 1.1838; 1.1822; 1.1810
Interested in EUR/USD technicals? Check out the key levels
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