EUR/USD outlook: Bears probe through key support zone

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro holds in red for the third consecutive day and accelerates lower in early Thursday, cracking pivotal supports at 1.0800/1.0790 zone (former higher base / Fibo 61.8% of 1.0695/1.0981 / base of thick daily Ichimoku cloud).

Technical picture is firmly bearish on daily chart (rising negative momentum / Tenkan / Kijun-sen bear-cross) and maintains pressure, with close below cloud base to confirm negative signal and open way for continuation of the downtrend from 1.0981 (Mar 8 top).

Fibo level at 1.0762 (76.4% of 1.0695/1.0981) marks initial target and the sole obstacle en-route towards key short-term support at 1.0695 (2024 low, posted on Feb 14).

Near-term bias is expected to remain with bears while the price stays below broken 200DMA (1.0835) which reverted to solid resistance.

Res: 1.0804; 1.0835; 1.0850; 1.0875.
Sup: 1.0762; 1.0732; 1.0695; 1.0611.

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

1. R3 1.0869
2. R2 1.0854
3. R1 1.0841
PP 1.0826
1. S1 1.0813
2. S2 1.0798
3. S3 1.0785

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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