EUR/USD Outlook: Recovery attempts to extend on easing risk-off mode but overall picture remains bearish
|EUR/USD
The Euro remains firm and holding near recovery high at 1.0871 (Monday’s high) inflated by lowered concerns about coronavirus pandemic risk that revived demand for riskier assets.
Monday’s repeated close above 10DMA was initial bullish signal with fresh probe above broken Fibo level at 1.0863 (76.4% of 1.0340/1.2555) looking for further signal on eventual break and close above, after double failure (Fri/Mon).
Rising daily momentum supports the advance, however, larger picture remains bearish and risk of recovery stall is still high.
Repeated failure to close above 1.0863 Fibo level would keep the downside vulnerable, with persisting fears of spreading coronavirus through Europe (after Italy was hit) adding to signs that recovery might be short-lived and fresh risk aversion would hit the single currency.
Pivotal barriers at 1.0900/15 (Fibo 38.2% of 1.1095/1.0778 bear-leg / falling 20DMA) need to cap extended upticks and keep bears in play, while break here would signal reversal and neutralize downside risk.
Res: 1.0871; 1.0899; 1.0915; 1.0936
Sup: 1.0845; 1.0831; 1.0805; 1.0778
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.