EUR/USD outlook: Euro remains constructive above 1.07 but limited upside action warns
|EUR/USD
EURUSD remains constructive and stays afloat above 1.0700 support, with long tails of daily candlesticks of past three days, signaling strong bids, although gains were limited.
Technical studies remain bullishly aligned on daily chart, but the pair lacks strength for stronger advance as positive momentum is fading.
Holding above 1.07 is seen as a minimum requirement to keep bulls in play but break of upper pivots at 1.0764/1.0800 (Fibo 38.2% of 1.1275/1.0483 downtrend / daily cloud top / 200DMA) is needed to generate signal of bullish continuation and open way for extension of larger recovery leg from 1.0448 (Oct 3 low).
Caution on loss of 1.07 handle which would signal that bulls might be running out of steam, though such scenario will require confirmation on drop and close below daily cloud base (1.0622).
Look for clearer direction signal.
Res: 1.0764; 1.0800; 1.0862; 1.0881
Sup: 1.0700; 1.0680; 1.0659; 1.0622
Interested in EUR/USD technicals? Check out the key levels
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