EUR/USD outlook: Fresh bears are pausing above strong supports and awaiting signal
|EUR/USD
The Euro extended weakness on Friday, following strong upside rejection and subsequent fall, driven by risk aversion on Thursday.
Fresh bears face headwinds at 1.1268/57 zone (converged 10/20/30DMA) and pausing here in early European trading, but technical signals continue to point lower.
Thursday's bull-trap above 1.1362 Fibo barrier (76.4%) and bearish daily candle with long upper shadow weighs, along with south-heading daily momentum and stochastic, however, fundamentals are expected to continue to heavily influence risk sentiment and define near-term direction. Bearish scenario requires break and close below 1.1268/57 pivots to further weaken near-term structure and expose lower targets at 1.1220/00. Conversely, cautious longs for possible renewed attack at cracked 1.1362 Fibo barrier could be favored while 1.1268/57 supports hold.
Res: 1.1295; 1.1325; 1.1348; 1.1370
Sup: 1.1265; 1.1254; 1.1220; 1.1200
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