Slobodan Drvenica
Windsor Brokers
EUR/USD
The Euro edges higher in European trading on Friday, consolidating a sharp fall on Wed/Thu (2.04%).
Renewed risk aversion which dragged the euro lower, is likely to gain pace as markets expect a robust US jobs report that would give a fresh signal to the US central bank for further aggressive tightening.
Bearish signals on daily chart from a double-top at parity level and a bull-trap above 0.9949 (Fibo 61.8% of 1.0197/0.9535) weigh on Euro along with weak daily studies, in addition to continuing pressure from a gap between the Fed/ECB interest rates.
Upticks should be ideally capped by broken Fibo 38.2% (0.9822), though near-term action is expected to remain biased lower while holding below daily Kijun-sen (0.9866).
Bearish continuation through temporary footstep at 0.9767 (50% of 0.9935/0.9999/daily Tenkan-sen) would expose targets at 0.9712 (Fibo 61.8% of 0.9935/0.9999 and 0.9645 (Fibo 76.4%) with stronger bearish acceleration on positive NFP surprise to risk retest of 20-year low at 0.9535.
Res: 0.9822; 0.9866; 0.9890; 0.9926.
Sup: 0.9767; 0.9712; 0.9645; 0.9585.
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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