EUR/USD outlook: EUR/USD dips to the lowest in over six months on weak German data and firmer dollar
|EUR/USD
EURUSD came under renewed pressure in mid-European / early US trading on Monday and broke through pivotal support at 1.0611(Fibo 38.2% of 0.9535/1.1275 rally), after bears were repeatedly rejected last Thu/Fri.
Fresh weakness signals continuation of larger downtrend, which was paused for consolidation in past six days, with bearish signal being generated on break of 1.0611 pivot (confirmation of signal requires daily close below here.
The pair is trading at the lowest in 6 ½ months and bears eye next strong support at 1.0553 (weekly cloud top).
Stronger headwinds could be expected in this zone as ascending weekly cloud is thickening and stochastic and RSI indicators are entering oversold territory on daily chart.
Although bears still firmly hold grip on all timeframes and there are no any signs of reversal so far, some price adjustment should be anticipated in coming sessions.
Upticks are likely to be limited and not to exceed falling 10DMA (1.0670) to keep bears intact.
Penetration of weekly cloud to expose targets at 1.0405 (50% retracement) and 1.0284 (weekly cloud base, in extension).
Res: 1.0611; 1.0642; 1.0670; 1.0700
Sup: 1.0553; 1.0483; 1.0405; 1.0290
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.