EUR/USD outlook: Near-term action lacks clear direction, 1.1290 Fibonacci level remains key
EUR/USD
The Euro is standing at the back foot in early Monday following last Friday’s nearly 1% bounce, driven by a weaker dollar on month-end sales and increased pressure as US traders are back after the Thanksgiving holiday pause.
Friday’s rebound resulted in Euro’s failure to register a weekly close below cracked key Fibo support at 1.1290 (61.8% of 1.0635/1.2349 rally) though, the initial signal of formation of bear-trap and stronger rebound, is likely to be short-lived if the pair fails to sustain a break above 1.1290 and register another daily close above this level.
Daily techs maintain strong negative momentum and MA’s in bearish setup, keeping the downside at risk.
Monday’s close below 1.1290 would signal that a brief correction might be over, however, larger bears look for a monthly close below the key Fibo level that would further weaken the structure and risk extension towards targets at 1.1040/00 (Fibo 76.4%/psychological).
Res: 1.1290; 1.1330; 1.1373; 1.1400.
Sup: 1.1248; 1.1186; 1.1168; 1.1100.
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.
