EUR/USD outlook: Neutral mode between 20 and 30DMA's

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro moves within narrow range in early Wednesday, unaffected by better than expected German data (June number of unemployed fell to 69K from 238K in May and well below 120K f/c, while Manufacturing PMI rose to 52.3 from 40.6 previous month). Tuesday's Doji with long shadows signals strong indecision, as positive impact from upbeat economic data is offset by fears from rising number of new infections globally that hurts risk sentiment. Markets eye US data, due later today (ADP private sector employment and Manufacturing PMI) for fresh signals. Daily studies show mixed signals as momentum is rising (although still in negative territory) and rising 30DMA continues to underpin, while the action remains below 20DMA (1.1267) for the fifth straight day, which could be seen as negative signal, along with long upper shadow of Monday's candle. Initial bearish signal could be expected on break of 30DMA (1.1193) and Fibo 38.2% of 1.0774/1.1422 (1.1175) that would spark stronger bearish acceleration, with tomorrow's daily cloud twist (1.0900) expected to be magnetic. Conversely, firm break above 20DMA would sideline downside risk and shift near-term focus higher.

Res: 1.1244; 1.1266; 1.1267; 1.1287
Sup: 1.1215; 1.1193; 1.1175; 1.1098

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

1. R3 1.1338
2. R2 1.13
3. R1 1.1267
PP 1.1229
1. S1 1.1196
2. S2 1.1158
3. S3 1.1125

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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