Slobodan Drvenica
Windsor Brokers
EUR/USD
The Euro extends pullback from new 2020 high on Wednesday (so far down 0.31% since opening today), following strong rejection at psychological 1.20 barrier.
Bulls peaked at 1.2011 but breach was short-lived and subsequent pullback left bearish daily candle with long upper shadow that made initial bearish signal.
Traders booked some profits on massive longs that added pressure on the near-term action.
Sort of bull-trap pattern that is forming on daily chart (although 1.20 is not a technical barrier) could contribute to current scenario, signaled by daily indicators during past few days. Fading momentum and south-heading stochastic/RSI add to negative signals.
Fresh bears pressure initial supports at 1.1855/38 (10/20DMA's) which guard more significant double Fibo's at 1.1825/22 (61.8% of 1.1711/1.2011/broken 61.8% of 1.2555/1.0635), which should contain dip and sideline risk of deeper pullback.
Key supports are higher base at 1.1700 zone and Fibo 38.2% of 1.1168/1.2011 (1.1689), with break here to signal reversal and neutralize bulls.
Res: 1.1888; 1.1928; 1.1965; 1.2000
Sup: 1.1855; 1.1838; 1.1822; 1.1810
Interested in EUR/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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