EUR/USD outlook: Bullish bias above 200-DMA, daily cloud twist also to attract bulls

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro keeps firm tone in early Tuesday and pressuring pivotal barriers at 1.0865/88 zone (Fibo 38.2% of 1.1139/1.0695 fall / 55DMA / Feb 22 spike high).

Fresh positive signal on Monday’s close above 200DMA (1.0825) which capped several attacks last week, added strength to recovery leg from 1.0695 (Feb 14 low) which emerged from a bear-trap under 1.0712 Fibo support.

Improving daily studies (positive momentum / MA’s in bullish setup / MA’s in positive setup and formed few bull-crosses) with bulls likely to be attracted by daily Ichimoku cloud twist (due next week).

Sustained break above 1.0865 Fibo barrier to add to reversal signals on daily chart and expose thinning daily cloud (spanned between 1.0898 and 1.0945, guarding resistances at 1.0969 / 1.1000 (Fibo 61.8% / psychological).

Near-term bias is expected to remain with bulls while the price stays above 200DMA.

Fundamentals remain slightly in favor of Euro on ECB / Fed rate outlook, though more details about Fed’s steps in the near future will be known after release of the US PCE data (Fed’s preferred inflation gauge) on Thursday.

Res: 1.0888; 1.0897; 1.0945; 1.0969.
Sup: 1.0845; 1.0825; 1.0800; 1.0762.

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

1. R3 1.0917
2. R2 1.0888
3. R1 1.0869
PP 1.0841
1. S1 1.0822
2. S2 1.0794
3. S3 1.0775

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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