EUR/USD outlook: Holds in prolonged sideways mode but bulls still hold grip

Slobodan Drvenica Windsor Brokers

EUR/USD

EURUSD remains in a sideways mode for the third straight day but narrow consolidation under new multi-week high signals that near-term action is bullishly aligned.

The pair is on track for the biggest weekly gain since early July and looks for close above cracked Fibo level at 1.0862 (50% retracement of 1.1275/1.0448) to confirm positive signals and open way for extension towards targets at 1.0959/1.1000 (Fibo 61.8% / psychological).

However, overbought daily studies warn that bulls may stay on hold for prolonged consolidation, with immediate bulls to stay intact while the price stays above broken 200DMA (1.0804), reverted to support.

Only loss of 1.0764/56 pivots (broken Fibo 38.2% / top of thick daily Ichimoku cloud) would question bulls.

Res: 1.0895; 1.0945; 1.0959; 1.1000.
Sup: 1.0824; 1.0804; 1.0790; 1.0756.

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

1. R3 1.095
2. R2 1.0923
3. R1 1.0885
PP 1.0857
1. S1 1.0819
2. S2 1.0792
3. S3 1.0754

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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