EUR/USD Outlook: Extended recovery eyes key barriers, but risk of stall exists
|EURUSD
The Euro advances at the beginning of the week, in extension of last week's rally (the biggest weekly rise since Nov), gaining additional support from weaker dollar, hit by soft US data on Friday, which raised concerns about dovish stance from Fed at the end of two-day policy meeting on Wednesday.
Fresh bullish acceleration probes above tops of last three days and eyes strong barriers at 1.1364/72 (converged 55/100SMA's/50% retracement of 1.1569.1.1176).
Daily cloud twists today at 1.1418 and attracts bulls, with fresh boost of positive sentiment on negative expectations from Fed, adding to bullish near-term outlook.
On the other side, negative momentum continues to rise on daily chart, while slow stochastic crests in overbought territory and warn that bulls may run out of steam, ahead of key barriers.
Converged 20/30SMA's (1.1318) mark solid support which is expected hold and maintain bullish bias. Conversely, break and close below would weaken near-term structure and risk dip towards next pivotal support at 1.1288 (10SMA).
Res: 1.1350; 1.1364; 1.1372; 1.1382
Sup: 1.1338; 1.1318; 1.1288; 1.1263
Interested in EURUSD technicals? Check out the key level
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.