EUR/USD outlook: Bulls likely to take a breather after last week's strong gains

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro keeps firm tone on Monday after surging over 4% last week and consolidating near new four-month high.

The single currency continues to ride on a fresh wave of dollar’s weakness, with last week’s gains being the biggest since the third week of March 2009, adding to significance of the latest rally.

Overall picture remains supportive, as fundamentals continue to work in favor of euro and technical studies are in full bullish configuration.

Last week’s close above important Fibo resistance at 1.0818 (61.8% of 1.1214/1.0177) contributed to bullish structure.

However, overbought conditions on daily chart suggest that bears may lose traction at this zone and pause for consolidation.

Broken 1.0818/00 supports (Fibo / psychological) offer immediate support, with broken 200DMA (1.0726) to ideally contain extended dips and mark positioning for fresh push higher and attack at 1.0969/1.1000 (Fibo 76.4% / psychological).

Res: 1.0888; 1.0900; 1.0969; 1.1000.
Sup: 1.0800; 1.0726; 1.0695; 1.0613.

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

1. R3 1.1013
2. R2 1.0951
3. R1 1.0899
PP 1.0837
1. S1 1.0785
2. S2 1.0723
3. S3 1.0672

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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