EUR/USD Outlook: Bears probe again below key Fibo support

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro returns below 1.10 handle in early American trading on Thursday, following mild reaction on US weekly jobless claims that rose to five-month high and temporarily deflated dollar.
Fresh weakness pressures again key Fibo support at 1.0993 (61.8% of 1.0878/1.1179), cracked earlier today, with close below here to generate bearish signal for attack at daily cloud base (1.0975).
Meanwhile, bears may take a breather and consolidate before final break lower, as oversold daily stochastic and north-heading momentum (although still in the negative territory) suggest. Upticks should ideally stay below falling 55DMA (1.1035) to keep bears in play and pivotal barrier at 1.1064 (broken Fibo 38.2%/30DMA) intact. Focus turns towards Friday's release of EU CPI and a batch of data from the US that may provide fresh signals.

Res: 1.1015; 1.1035; 1.1054; 1.1064
Sup: 1.0989; 1.0968; 1.0949; 1.0903

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

1. R3 1.1048
2. R2 1.1035
3. R1 1.1021
PP 1.1008
1. S1 1.0995
2. S2 1.0982
3. S3 1.0969

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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