EUR/USD outlook: Bears crack key support zone and risk deeper fall

Slobodan Drvenica Windsor Brokers

EUR/USD

Bears probe through psychological 1.20 support in early European trading on Wednesday and risk deeper fall.

Bull-trap above 1.2102 Fibo barrier and last Friday’s massive bearish candle weigh on Euro as bears pressure next key supports at 1.1979/73 (Fibo 38.2% of 1.1704/1.2149/daily cloud top), loss of which would generate strong bearish signal for extension towards 1.1941/27 (200DMA/50% retracement) and 1.1899 (daily cloud base) in extension.

Weakening daily studies (momentum is approaching negative territory and 5/10/20 DMA’s turned to bearish setup) support the action, but oversold stochastic warns that bears may face headwinds.

Upticks are expected to stay below broken 100DMA (1.2049) and offer better selling opportunities.

Res: 1.2015; 1.2026; 1.2049; 1.2061
Sup: 1.1979; 1.1973; 1.1941; 1.1899

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

1. R3 1.2121
2. R2 1.2093
3. R1 1.2054
PP 1.2026
1. S1 1.1987
2. S2 1.1959
3. S3 1.192

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 holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.