Slobodan Drvenica
Windsor Brokers
EUR/USD
The Euro remains firm and holding near recovery high at 1.0871 (Monday’s high) inflated by lowered concerns about coronavirus pandemic risk that revived demand for riskier assets.
Monday’s repeated close above 10DMA was initial bullish signal with fresh probe above broken Fibo level at 1.0863 (76.4% of 1.0340/1.2555) looking for further signal on eventual break and close above, after double failure (Fri/Mon).
Rising daily momentum supports the advance, however, larger picture remains bearish and risk of recovery stall is still high.
Repeated failure to close above 1.0863 Fibo level would keep the downside vulnerable, with persisting fears of spreading coronavirus through Europe (after Italy was hit) adding to signs that recovery might be short-lived and fresh risk aversion would hit the single currency.
Pivotal barriers at 1.0900/15 (Fibo 38.2% of 1.1095/1.0778 bear-leg / falling 20DMA) need to cap extended upticks and keep bears in play, while break here would signal reversal and neutralize downside risk.
Res: 1.0871; 1.0899; 1.0915; 1.0936
Sup: 1.0845; 1.0831; 1.0805; 1.0778
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.
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