EUR/USD outlook: Recovery lacks strength to clear pivotal barriers

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro holds for the second day in a corrective mode off new nearly 15-month low at 1.1524, where weekly cloud base contained larger downtrend, helped by weaker dollar.

Wednesday’s long bullish candle (the pair was up 0.53% for the day) formed bullish outside day, which is expected to underpin the action, but recovery showed signs of stall on approach to falling 20DMA (1.1631).

Quick return below broken pivotal Fibo barrier at 1.1612 (38.2% of 1.1755/1.1524 bear-leg) softens near-term tone as close above here and 20DMA is required to signal reversal and open way for further advance.

Failure to clear these barriers would question fresh bulls and keep the downside vulnerable.

Daily studies are in mixed setup as momentum is rising but the indicator remains deeply in the negative territory, 5/10DMA’s are about to for bull-cross, while slower MA’s (20/30/55 DMA) remain above the price and head south.

Near-term action is expected to remain constructive above 10DMA (1.1575), but without much of upside potential while 1.1612/31 barriers resist.

Caution on return below 10DMA that would risk retest of key weekly cloud base (1.1557).

Res: 1.1612; 1.1640; 1.1667; 1.1695.
Sup: 1.1557; 1.1524; 1.1492; 1.1421.

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

1. R3 1.1686
2. R2 1.1642
3. R1 1.1617
PP 1.1573
1. S1 1.1549
2. S2 1.1505
3. S3 1.1481

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.