EUR/USD outlook: Bulls lose traction, eye key supports at 1.0800 zone
EUR/USD
EURUSD holds in red for the second straight day on Thursday and extends pullback from new highest level in more than five months.
Double rejection under Fibo resistance at 1.0969 (76.4% of 1.1214/1.0177 downtrend) and overbought studies on daily chart dented bulls, with fresh rise of dollar after hawkish remarks from Fed Powell, added pressure on the single currency.
However, the price action still holds within near-term consolidation range (1.0820/1.0954) and rather neutral mode should be expected if it remains within prolonged consolidation.
On the other hand, violation of pivotal 1.0820/00 zone (range floor / Fibo 23.6% of 1.0360/1.0954 / psychological) would generate initial reversal signal and open way for deeper correction.
Scenario is supported by south-heading momentum studies, although countered by converging 20/200DMA’s, on track to form golden-cross a7 1.0727, where 200DMA is reinforcing pivotal Fibo support (38.2% retracement of 1.0360/1.0954).
Res: 1.0880; 1.0903; 1.0954; 1.0969.
Sup: 1.0820; 1.0800; 1.0727; 1.0708.
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.
