EUR/USD outlook: Bearish bias below daily cloud

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro eased on Thursday morning and signal that near-term bears off 1.1728 (Oct 17 lower top) are regaining control after limited and short-lived recovery attempts on Wednesday.

The price has established below relatively thick daily Ichimoku cloud which continues to weigh on near-term action, after Wednesday’s bounce attempts stalled under initial barriers at 1.1631/35 (Fibo 23.6% of 1.1918/1.1542 / daily Tenkan-sen) guarding cloud base (1.1655).

Negative daily studies (14-d momentum moves deeper in the negative territory, RSI at 42 and MA’s in full bearish setup) contribute to scenario of probe through trendline support (1.1566) and potential retest of daily higher base at 1.1542 (formed in past two weeks).

Firm break here would generate stronger negative signals (bearish continuation on completion of bearish failure swing) and open way towards 1.1400 zone (higher base of late July/early Aug).

Res: 1.1635; 1.1655; 1.1686; 1.1700.
Sup: 1.1566; 1.1542; 1.1500; 1.1391.

Interested in EUR/USD technicals? Check out the key levels

1. R3 1.1677
2. R2 1.165
3. R1 1.163
PP 1.1604
1. S1 1.1584
2. S2 1.1556
3. S3 1.1536

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold the battle of wills continues with bulls not ready to give up

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.