EUR/USD Outlook: Dip below 1.10 handle generates bearish signal

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro fell pivotal supports at 1.1015/00 in fresh bearish acceleration on Wednesday, as sentiment weakened on expectations for dovish stance from ECB on Thursday.
Multiple failures to clear important Fibo barrier at 1.1049 and recent action being repeatedly capped by falling 20DMA, were initial signals od recovery stall and subsequent easing, with ECB and stronger than expected US PPI data on Wednesday, contributing to fresh weakness.
Daily indicators turned south and MA's came to bearish setup, adding to negative near-term outlook.
Daily close below psychological 1.10 support will be negative signal, which needs confirmation on extension and close below 1.0986 (Fibo 61.8% of 1.0925/1.1084 upleg).

Res: 1.1000; 1.1015; 1.1049; 1.1055
Sup: 1.0986; 1.0963; 1.0925; 1.0863

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

1. R3 1.1092
2. R2 1.1076
3. R1 1.1063
PP 1.1047
1. S1 1.1034
2. S2 1.1018
3. S3 1.1005

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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