EUR/USD outlook: Firm break of psychological 1.07 support to open way for further weakness
|EUR/USD
The Euro came under renewed pressure and fell to new nine-week low on Wednesday, bringing larger bears back to play after brief consolidation above 1.07 support.
Fresh weakness so far shapes Wednesday’s action in large bearish candle, which is on track to offset initial reversal signal on Monday’s inverted hammer and Tuesday’s bullish candle, along with false break below 1.07.
Today’s close below 1.07 level would add to fresh signals of bearish continuation, with violation of nearby Fibo support at 1.0652 (76.4% of 1.0516/1.1095) to open way for possible full retracement of 1.0516/1.1095 rally.
Bearish daily studies contribute to negative near-term outlook, though caution is still required, as repeated failure to register close below 1.07 mark would signal prolonged consolidation.
Immediate bears are expected to remain fully in play while falling daily Tenkan-sen (1.0744) caps, while break higher would ease downside pressure and open door for bounce towards strong barrier at 1.0805 (base of thick daily Ichimoku cloud).
Res: 1.0700; 1.0744; 1.0759; 1.0805.
Sup: 1.0652; 1.0631; 1.0600; 1.0551.
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.