EUR/USD outlook: Close below 1.2173 Fibo support to risk deeper fall

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro holds firmly in red for the third straight day and dips to the lowest since 21 Dec on Monday, deflated by stronger dollar and fading risk sentiment.
Fresh extension lower broke below 20DMA (1.2218, now reverted to solid resistance) and pivotal Fibo support at 1.2173 (23.6% of 1.1602/1.2349), firm break of which would weaken near-term structure and boost near-term bears.
Daily studies weakened, supporting fresh bears as momentum broke into negative territory and continues to head south and 5/10/20DMA's turned to bearish setup.
Key support lays at 1.2064 (Fibo 38.2% of 1.1602/1.2349) and break here would sideline larger bulls for deeper correction.

Res: 1.2218; 1.2247; 1.2264; 1.2284
Sup: 1.2129; 1.2100; 1.2064; 1.2000

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

1. R3 1.2368
2. R2 1.2326
3. R1 1.2276
PP 1.2235
1. S1 1.2185
2. S2 1.2143
3. S3 1.2093

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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