EUR/USD Outlook: Bears are pausing above new 3-year low ahead of Fed minutes

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro edges higher in early European trading on Wednesday after probe below 1.08 handle resulted in posting new three-year low at 1.0785 on Tuesday.
Recovery was so far mild and mainly driven by strong EURJPY buying, however, deeply oversold daily studies continue to warn about stronger correction, but lacking firmer signal for now as both indicators, RSI and stochastic are still in sideways mode.
The EURUSD pair is in steady and orderly downtrend since the beginning of the year and currently riding on the third wave of five-wave cycle from 1.1239.
Bears attempt to fill April 2017 gap and clear support at 1.0752 (FE 138.2%) that would spark further bearish extension towards 1.0570 (10 Apr 2017 low).
Solid resistances lay at 1.0863/72 (broken Fibo 76.4% / falling 10DMA) and bears are expected to remain intact while these barriers cap, while break higher would signal stronger recovery.
Fed minutes are due later today and in focus for fresh signals.
Signals of rate cut from the central bank would depress the greenback and lift the single currency, while vote for unchanged policy would keep the Euro under pressure.

Res: 1.0807; 1.0819; 1.0837; 1.0872
Sup: 1.0785; 1.0752; 1.0723; 1.0700

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

1. R3 1.0881
2. R2 1.086
3. R1 1.0828
PP 1.0807
1. S1 1.0775
2. S2 1.0754
3. S3 1.0722

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.

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