EUR/USD outlook: Limited consolidation to precede fresh push lower

Slobodan Drvenica Windsor Brokers

EUR/USD

EURUSD edges higher from new 5 ½ month low 1.0602) on Tuesday, as strongly oversold daily studies prompted profit-taking.

Near-term sentiment turned fully bearish, and the action weighed by a large weekly bearish candle (the par was down 1.8% last week).

Upticks should provide better selling levels, with solid barriers at 1.0700 zone (former low of Feb 14 / psychological / Fibo 38.2% of 1.0885/1.0602 bear-leg) to ideally cap.

Violation of pivots at 1.0600 zone (fresh low / Fibo 38.2% of 1.0052/1.1275 rally) to open way for test of weekly cloud base (1.0502) and Oct 13 low (1.0495).

Res: 1.0665; 1.0695; 1.0710; 1.0743.
Sup: 1.0602; 1.0516; 1.0495; 1.0448.

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

1. R3 1.0698
2. R2 1.0682
3. R1 1.0653
PP 1.0637
1. S1 1.0608
2. S2 1.0592
3. S3 1.0563

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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