EUR/USD outlook: Fresh bears are pausing above strong supports and awaiting signal

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro extended weakness on Friday, following strong upside rejection and subsequent fall, driven by risk aversion on Thursday.
Fresh bears face headwinds at 1.1268/57 zone (converged 10/20/30DMA) and pausing here in early European trading, but technical signals continue to point lower.
Thursday's bull-trap above 1.1362 Fibo barrier (76.4%) and bearish daily candle with long upper shadow weighs, along with south-heading daily momentum and stochastic, however, fundamentals are expected to continue to heavily influence risk sentiment and define near-term direction. Bearish scenario requires break and close below 1.1268/57 pivots to further weaken near-term structure and expose lower targets at 1.1220/00. Conversely, cautious longs for possible renewed attack at cracked 1.1362 Fibo barrier could be favored while 1.1268/57 supports hold.

Res: 1.1295; 1.1325; 1.1348; 1.1370
Sup: 1.1265; 1.1254; 1.1220; 1.1200

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

1. R3 1.1434
2. R2 1.1402
3. R1 1.1344
PP 1.1312
1. S1 1.1253
2. S2 1.1222
3. S3 1.1163

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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