EUR/USD outlook: Euro risks deeper pullback after bulls repeatedly stalled
|EUR/USD
The Euro lost traction on Friday following comments from ECB President Lagarde who said that it is still too early to discuss policy after the end of central bank’s emergency bond-buying scheme and seeing inflation rise this year as temporary, that offset positive signals from upbeat EU PMI data, released earlier today.
Near-term action remains congested for the fourth consecutive day, with fading bullish momentum and south-turned daily RSI and stochastic, signaling that near-term structure is weakening.
Failure to register weekly close above cracked Fibo barrier at 1.2197 (76.4% of 1.2349/1.1704) would add to negative signals, as initial signal of bull-trap pattern forming on the weekly chart would be generated.
Rising 10DMA (1.2152) which reinforced the current range floor, turned sideways and also warning for deeper pullback.
Caution on a close below 10 DMA that would risk test of key supports at 1.2120/13 (bull-trendline off 1.1704 low / rising 20DMA.
Res: 1.2197; 1.2234; 1.2300; 1.2349.
Sup: 1.2171; 1.2152; 1.2113; 1.2102.
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.