EUR/USD outlook: Looks for direction signal to end extended sideways mode

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro firmed on Friday and probes again through initial barrier at 1.1635 (daily cloud base / daily Tenkan-sen) after short-lived cloud penetration on Thursday which left daily candle with long upper shadow.

Daily cloud continues to cap upticks for almost two weeks, contributing to overall bearish daily structure (cluster of converged DMAs stays just above the price and created several bear-crosses / 14-d momentum remains in negative territory).

On the larger timeframe, the price remains underpinned by ascending and thick weekly cloud for the ninth consecutive week, that contributes to mixed signals, keeping the price action in directionless mode and holding within 1.1595/1.1685 range, with violation of either range boundary needed to generate initial direction signal.

Res: 1.1664; 1.1685; 1.1697; 1.1712.
Sup: 1.1600; 1.1576; 1.1500; 1.1443.

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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