Slobodan Drvenica
Windsor Brokers
EUR/USD
EURUSD came under renewed pressure in mid-European / early US trading on Monday and broke through pivotal support at 1.0611(Fibo 38.2% of 0.9535/1.1275 rally), after bears were repeatedly rejected last Thu/Fri.
Fresh weakness signals continuation of larger downtrend, which was paused for consolidation in past six days, with bearish signal being generated on break of 1.0611 pivot (confirmation of signal requires daily close below here.
The pair is trading at the lowest in 6 ½ months and bears eye next strong support at 1.0553 (weekly cloud top).
Stronger headwinds could be expected in this zone as ascending weekly cloud is thickening and stochastic and RSI indicators are entering oversold territory on daily chart.
Although bears still firmly hold grip on all timeframes and there are no any signs of reversal so far, some price adjustment should be anticipated in coming sessions.
Upticks are likely to be limited and not to exceed falling 10DMA (1.0670) to keep bears intact.
Penetration of weekly cloud to expose targets at 1.0405 (50% retracement) and 1.0284 (weekly cloud base, in extension).
Res: 1.0611; 1.0642; 1.0670; 1.0700
Sup: 1.0553; 1.0483; 1.0405; 1.0290
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.
Recommended Content
Editors’ Picks
EUR/USD hits fresh three-month highs above 1.0970 as USD slides
EUR/USD rose above 1.0970, reaching the highest intraday level since August 11. The pair holds near the highs, supported by broad-based US Dollar weakness as market participants await comments from Federal Reserve officials and US housing data.
GBP/USD rises toward 1.2650 as DXY hits fresh monthly lows
GBP/USD rose from daily lows to 1.2648, the strongest level since early September on the back of a weaker US Dollar. The DXY trades near 103.00 at the lowest in almost three months ahead of comments from Fed officials.
Gold surges to six-month high amid soft USD ahead of Fed speeches
Gold price climbs to a six-month high, more than 0.50% on Tuesday, early in the North American session, as the Greenback remains on the defensive, undermined by falling US Treasury bond yields.
Dogecoin price might recover losses if volume picks up
Dogecoin has noted a massive rise in wallet addresses with a non-zero balance. This increase is typical of rising demand among market participants for DOGE. On-chain metrics paint a bullish outlook for Dogecoin.
Eurozone bank lending continues to weaken as economy adjusts to higher rates
Loans to businesses are now 0.3% lower than in October last year, the first annual decline since July 2015. This confirms that monetary tightening is having a clear effect on the economy. A divide between countries is also opening up.