EUR/USD outlook: Euro remains elevated by renewed risk appetite

Slobodan Drvenica Windsor Brokers

EUR/USD

Improved risk sentiment keeps the euro supported for the second straight day, adding to signals that 1.0930/1.0713 correction might be over, as fresh advance broke above 50% retracement of the pullback.

Daily studies maintain strong positive momentum and moving averages in bullish setup created several bull-crosses, contributing to positive near-term signals.

Bulls need close above 1.0821/38 (50% retracement of 1.0930/1.0713 / Mar 24 high / Fibo 61.8% of 1.1032/1.0516) to confirm signal and keep near-term bullish stance for further advance towards 1.0930 (Mar 23 spike high) and falling 100WMA (1.0971.

Caution on Wednesday’s daily cloud twist which could be magnetic and obstruct the latest advance, though if the price manages to stay above cloud, this would support the action, as the cloud thickens after the twist and will additionally underpin.

Today calendar is light, with focus on speech of ECB’s President Lagarde and US consumer confidence.

Res: 1.0838; 1.0876; 1.0930; 1.1000.
Sup: 1.0778; 1.0740; 1.0713; 1.0687.

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

1. R3 1.0872
2. R2 1.0836
3. R1 1.0817
PP 1.0781
1. S1 1.0762
2. S2 1.0726
3. S3 1.0706

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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