EUR/USD outlook: Euro may accelerate higher on break of key Fibo resistance

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro is consolidating after strong acceleration in past two days (the pair was up 1.92%) but keeps firm tone.

Bulls hit new multi-month high on Friday and eye next target at 1.0578 (Fibo 38.2% of larger1.2266/0.9535 downtrend), break of which to confirm reversal pattern on monthly chart and open way for stronger recovery.

Strong bullish momentum on daily and weekly chart and double golden-cross (5/200 and 10/200 DMA) support the action, although headwinds could be expected as studies are overbought on both timeframes.

Look for better levels to -re-enter bullish market, while dips hold above rising 10DMA (1.0387).

Res: 1.0578; 1.0620; 1.0700; 1.0786.
Sup: 1.0480; 1.0426; 1.0387; 1.0366.

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

1. R3 1.0715
2. R2 1.0624
3. R1 1.0574
PP 1.0484
1. S1 1.0434
2. S2 1.0343
3. S3 1.0293

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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