EUR/USD outlook: Bears eye 2024 low [Video]

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro fell to new multi-week low early Tuesday, weighed by firm dollar and recent dovish comments from ECB policymakers, who see four rate cuts in 2024.

Monday’s 0.4% drop and close below 1.0762 (Fibo 76.4% of 1.0695/1.0981 upleg), adds to bearish near-term outlook and unmasks key support at 1.0695 (2024 low, posted on Feb 14).

Strengthening negative momentum on daily chart and MA’s in bearish setup (10/200DMA death cross and converged 55/200DMA’s about to form bear-cross) point to bearish technical picture, though oversold conditions may slow bears for consolidation.

Broken pivotal supports at 1.0800 zone (daily cloud base / Fibo 61.8%) reverted to solid barriers which should keep the upside protected.

Traders look fresh signals from today’s release of German CPI data and Eurozone inflation report on Wednesday.

Res: 1.0762; 1.0804; 1.0834; 1.0861.
Sup: 1.0724; 1.0695; 1.0611; 1.0585.

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

1. R3 1.0852
2. R2 1.0826
3. R1 1.0784
PP 1.0758
1. S1 1.0717
2. S2 1.069
3. S3 1.0649

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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