EUR/USD outlook: Daily cloud twist continues to attract bulls
EUR/USD
The Euro is holding firm tone on Tuesday morning and extending advance into fourth straight day.
Near-term action continues to advance along with rising daily Ichimoku cloud base, as the cloud twists next week (1.0758) and attracts bulls.
Bullish daily studies contribute to positive near-term outlook, as bulls broke through pivotal Fibo barrier at 1.0718 (38.2% of 1.1032/1.0516 descend) and pressure next key resistance at 1.0759 (Mar 15 high / top of the recent range.
Firm break here is needed to signal an end of a month-long sideways trading and confirm a higher base at 1.0520 zone (lows of Mar 8,15), which would open way for further recovery of 1.1032/1.0516 pullback.
Converged and parallel-running daily Kijun-sen and Tenkan-sen (although still in bearish configuration) offer supports.
Kijun-sen (1.0660) should contain dips to keep bulls in play, while drop and close below Tenkan-sen (1.0637) would weaken near-term structure and shift immediate focus to the downside.
Markets await today’s key releases (German / EU ZEW Economic sentiment) for fresh signals, as both indicators are forecasted to show significantly lower values in March in comparison to February).
Res: 1.0759; 1.0778; 1.0838; 1.0874.
Sup: 1.0704; 1.0660; 1.0637; 1.0585.
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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.
