Slobodan Drvenica
Windsor Brokers
EUR/USD
EURUSD keeps negative tone, but near-term action seems to be lacking firmer direction signals.
Wednesday’s strong upside rejection left a daily candle with long upper shadow and formed a bull-trap above 10 DMA, signaling strong bearish pressure, but long lower shadows on daily candles of Thursday / today, suggest that bears face headwinds from immediate support at 1.0611 (Fibo 38.2% of 0.9535/1.1275 uptrend and nearby top of thickening weekly Ichimoku cloud (1.0553).
Although the pair is on track for the tenth consecutive weekly close in red, the action of this week is shaped in Doji candle which signals indecision and may result in extended consolidation above 1.0611 Fibo support.
However, potential consolidation should not be long-lasting and likely limited as technical picture on daily chart is firmly bearish and negative outlook reinforced by bearish fundamentals as latest economic data added to signals that euro zone economy will likely contract in the third quarter, with unclear signs when the economy will return to growth.
This fuels expectations for bearish continuation scenario on break of 1.0611/1.0553 pivots and attack at next key target at 1.0516 (Mar 15 low) break of which would expose supports at 1.0405 (50% retracement) and 1.0295 (weekly cloud base).
Falling 10DMA offers initial resistance at 1.0686) which should ideally cap upticks and keep intact falling 20DMA (1.0736) violation of which would put larger bears on hold and unmask upper pivot at 1.0828 (200DMA).
Res: 1.0686; 1.0700; 1.0736; 1.0779.
Sup: 1.0611; 1.0553; 1.0483; 1.0405.
Interested in EUR/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD Weekly Forecast: Sellers gain confidence alongside the Fed Premium
The EUR/USD pair fell towards a fresh two-month low of 1.0900, finishing the second consecutive week in negative though little changed at around 1.0940.
Read full analysis
GBP/USD Weekly Forecast: Pound Sterling stays vulnerable ahead of UK inflation data Premium
The Pound Sterling (GBP) booked the second straight weekly loss against the US Dollar (USD), sending the GBP/USD pair to the lowest level in a month below 1.3050.
Gold Weekly Forecast: XAU/USD holds above key support area after bearish action to start week Premium
Gold (XAU/USD) declined sharply in the first half of the week but regained its traction after coming within a touching distance of $2,600.
Bitcoin Weekly Forecast: Will BTC decline further?
Bitcoin’s (BTC) price fell over 6% at some point this week until Thursday, extending losses for a second consecutive week, as it faced rejection from a key resistance barrier.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.