EURUSD outlook: Stands at the front foot and extends recovery ahead of Fed
|The Euro hits new session high in early US session trading on Wednesday, on extension of bounce from daily low at 1.1730, posted in late Asian session, where thick rising 4-hr cloud contained dips.
The single currency rallied despite weaker than expected EU IP data (Apr -0.9% vs -0.5% f/c and 0.6% in Mar) and returned above 10SMA (1.1740) which was cracked on short-lived dip to 1.1730.
Break and close above 30SMA (1.1781) which capped upside attempts in past four days, is needed to provide relief and shift near-term focus higher.
More likely scenario sees Euro lower on hawkish Fed, with upticks seen as positioning.
Bearish scenario requires close below 1.1721/13 pivots (20SMA/Fibo 38.2% of 1.1509/1.1839), to generate fresh bearish signal which could be boosted by dovish ECB tomorrow, for extension towards 1.16 zone.
Res: 1.1781; 1.1809; 1.1839; 1.1850
Sup: 1.1730; 1.1713; 1.1674; 1.1652
Interested in EURUSD 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.