EUR/USD outlook: Bulls take a breather but remain in play while daily cloud top contains dips

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro edges lower in early Monday’s trading as bulls enter consolidation after record 4% weekly advance last week.
Traders took some profits and overbought stochastic also points to consolidative / corrective action before bulls resume.
Strong bullish signal was generated on Friday’s close above pivotal barriers at 1.1066/80 (50% retracement of 1.1494/1.0635 / 200DMA).
Dips should find ground above daily clod top / psychological support (1.1008/00) to keep bulls in play for fresh push higher and attack at key Fibo barrier at 1.1166 (61.8% of 1.1494/1.0635).
Caution on extension below cloud top that would put bulls on hold, but return and close below double-Fibo supports at 1.0963/51 (broken 38.2% of 1.1494/1.0635 / 38.2% of 1.0635/1.1147) is needed signal an end of bull-phase from 1.0635.

Res: 1.1100; 1.1147; 1.1166; 1.1200
Sup: 1.1060; 1.1026; 1.1008; 1.0963

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

1. R3 1.1401
2. R2 1.1274
3. R1 1.1207
PP 1.108
1. S1 1.1013
2. S2 1.0886
3. S3 1.082

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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