EUR/USD outlook: Extended recovery penetrates daily cloud and focuses key barriers

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro extends recovery into fifth straight day, with bullish signal generated on Wednesday's close above 1.0838 Fibo barrier (23.6% of 1.1494/1.0635).
Fresh advance cracks the base of thick daily cloud (spanned between 1.0930 and 1.1008) reinforced by daily Tenkan-sen.
Penetration into daily cloud would expose next pivotal Fibo barrier at 1.0963 (38.2% retracement), break of which would generate initial reversal signal which will require confirmation on close above 1.1000/08 (psychological/cloud top).
Another strong resistance zone lays above here, provided by a cluster of sideways-moving daily MA's (100/20/200) and bulls will face a tough work to resume.
Flat daily momentum warns but expectations for surge in US jobless claims would deflate dollar along with stimulus package and help Euro's recovery.

Res: 1.0963; 1.1008; 1.1042; 1.1065
Sup: 1.0888; 1.0869; 1.0838; 1.0804

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

1. R3 1.1064
2. R2 1.0979
3. R1 1.0931
PP 1.0846
1. S1 1.0797
2. S2 1.0712
3. S3 1.0664

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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