EUR/USD outlook: Bullish signal is developing on daily chart but needs more evidence for confirmation
EUR/USD
EUR/USD remains in a narrow-range sideways mode in early Tuesday’s trading, in extension of Monday’s action, shaped in Doji candle and signaling indecision
Initial positive signal is developing on daily chart following last Friday’s strong downside rejection which left a bear trap under 1.0405 Fibo support (50% retracement of 0.9535/1.1275 rally (Sep 2022/July 2023).
Also, fresh recovery probe above the upper borderline of falling wedge pattern, with firm break to boost the signal.
However, more work at the upside will be required to confirm signal (break through 1.0525/63 pivots – falling 10DMA / Fibo 38.2% of 1.0936/1.0327) and open way for stronger recovery.
Caution on still weak technical studies (14-d momentum is still deeply in the negative territory, although heading north and DMA’s in bearish setup) and predominantly euro-negative fundamentals, which may deflate recovery attempts.
Res: 1.0525; 1.0563; 1.0609; 1.0634.
Sup: 1.0475; 1.0424; 1.0705; 1.0332.
Interested in EUR/USD technicals? Check out the key levels
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.
