EUR/USD outlook: Firm break of 1.2068 Fibo support needed to signal deeper pullback

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro edges higher in early European trading on Thursday following 0.62% drop on Wednesday after strong US inflation data deflated risk mode.

Wednesday’s drop came after multiple upside rejections that left long upper shadows on daily candles, warning that bulls lose steam.

Fresh weakness dented initial Fibo support at 1.2068 (23.6% of 1.1704/1.2181, reinforced by 20DMA) but found temporary footstep here, keeping the risk of deeper pullback on hold.

Bearish signals are developing on daily chart as descending momentum is about to break into negative territory, but break of 1.2068 Fibo support and 1.2043/34 (100DMA/trendline support) is needed to tern near-term bias bearish and risk test of key 1.20 support zone, break of which would signal reversal.

Res: 1.2121; 1.2149; 1.2181; 1.2197.
Sup: 1.2068; 1.2043; 1.2034; 1.2000.

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

1. R3 1.2215
2. R2 1.2184
3. R1 1.2128
PP 1.2097
1. S1 1.2042
2. S2 1.201
3. S3 1.1955

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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