EUR/USD Outlook: Bounce off 1.12 extends but risk of recovery stall exists

Slobodan Drvenica Windsor Brokers

EURUSD

The Euro extends rebound from strong 1.12 support zone into second day and generated initial positive signals on probe through thin daily cloud and a cluster of converged daily MA's. Recovery needs more evidence for stronger upside signal, which could be generated on close above daily cloud and extension above 100DMA (1.1249) that would re-expose key barriers at 1.1277/85 zone (Fibo 38.2% of 1.1412/1.1193 / 11/15 July highs/converging 20/30DMA's) Strong bearish momentum is starting to fade and helps recovery, along with weaker dollar, but overall picture is still negative and keep in play risk of limited correction ahead of fresh attempts towards key 1.1200/1.1180 support zone.

Res: 1.1249; 1.1263; 1.1285; 1.1300
Sup: 1.1223; 1.1200; 1.1193; 1.1181

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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