EUR/USD outlook: Euro falls after eurogroup failed to agree on funding aid
EUR/USD
The Euro was down 0.5% in Wednesday's Asian/early European trading weighed down by failure of EU financial ministers to agree the way of funding economy package. Fading risk mode on increased death toll on COVID 19 adds to negative near-term outlook and keeping the single currency in red. Fresh weakness erased approx. 50% of Tuesday's 1% advance which cracked pivotal Fibo barrier at 1.0913 (38.2% of 1.1147/1.0768) but failed to break higher, with falling 20DMA approaching and reinforcing the resistance. Daily techs remain mixed (rising momentum and ascending stochastic vs negatively aligned RSI and MA's in bearish setup) and lack clearer signal, but fresh risk aversion and stronger dollar keep the downside in focus. Return below former key Fibo support at 1.0831 (61.8% of 1.0635/1.1147) which so far holds today's action, would further weaken near-term structure and risk retest of 1.0768 (6 Apr low).
Res: 1.0901; 1.0925; 1.0940; 1.0957
Sup: 1.0830; 1.0800; 1.0783; 1.0768
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.
