EUR/USD outlook: Bears are pausing ahead of ECB

Slobodan Drvenica Windsor Brokers

EUR/USD

The EURUSD is moving within a narrow range around 1.1800 handle in early Thursday, awaiting signals from today’s ECB policy meeting.

The market expectations are mainly for dovish event that would add pressure to the single currency for attack at key supports at 1.1704/1.1694 (2021 low / Fibo 38.2% of 1.0635/1.2349 rally).

Long tails of daily candles of past three days signal that larger bears are facing headwinds, but remain firmly in play, as daily studies maintain negative momentum and moving averages remain in bearish setup.

Falling 10DMA (1.1811) and 20DMA (1.1838) track the downtrend from early June and mark solid resistances, with close above these indicators to sideline immediate downside risk.

Res: 1.1811; 1.1838; 1.1850; 1.1881.
Sup: 1.1751; 1.1737; 1.1704; 1.1694.

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

1. R3 1.1868
2. R2 1.1836
3. R1 1.1815
PP 1.1784
1. S1 1.1762
2. S2 1.1731
3. S3 1.1709

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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