EUR/USD outlook: Euro is consolidating after the biggest one-day advance in a year

Slobodan Drvenica Windsor Brokers

EUR/USD

EURUSD edged lower in European trading on Wednesday as traders collected some profits after Tuesday’s 1.7% advance (the biggest one-day gain in one year), sparked by bigger than expected drop in US inflation in October, which deflated dollar

Near-term picture is increasingly bullish after Tuesday’s acceleration surged through few key technical barriers, resulting in close well above thick daily Ichimoku cloud and above 50% retracement of 1.1275/1.0448 downtrend.

Bulls are taking a breather and positioning for fresh push higher, with broken 200DMA (1.0802) to ideally contain dips and offer better buying opportunities for extension towards targets at 1.0959/1.1000 (Fibo 61.8% / psychological).

Broken Fibo 38.2% and daily cloud top (1.0764/1.0759 respectively) mark pivotal supports which should hold extended dips and keep near-term bias with bulls.

Res: 1.0887; 1.0945; 1.0959; 1.1000.
Sup: 1.0802; 1.0764; 1.0756; 1.0700.

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

1. R3 1.1144
2. R2 1.1016
3. R1 1.0949
PP 1.0821
1. S1 1.0755
2. S2 1.0627
3. S3 1.056

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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