EUR/USD Outlook: Recovery remains capped by key 1.1140 resistance zone but n/t action is still slightly biased higher


EUR/USD

Attempts to extend recovery after strong downside rejection last Friday remain limited by a cluster of key barriers at 1.1140 zone (200DMA / double Fibo barrier / converged daily Tenkan-sen/Kijun-sen).
Long shadow on Friday’s daily candle underpins the action along with rising stochastic, but flat momentum and RSI and converging 10/200DMA’s, in attempt to form death-cross, are factors that offset positive signals.
Larger picture shows an uptrend from 1.0981 (29 Nov low) still intact and keeps focus at the upside.
Eventual break above 1.1140 zone pivots would signal formation of higher low at 1.1084 (10 Jan) and spark fresh bullish acceleration towards barriers at 1.1180 (Fibo 61.8% of 1.1239/1.1084) and 1.1200 (round-figure / 6 Jan recovery rejection).
Conversely, repeated failure to close above cracked 1.1140 zone would increase risk of stall and pullback.
Close below 30DMA (1.1123) would generate initial bearish signal which would look for confirmation on extension and close below 1.1104 (Tuesday’s spike low) to open way for retest of 1.1084 low.

Res: 1.1140; 1.1162; 1.1180; 1.1205
Sup: 1.1123; 1.1104; 1.1084; 1.1066

EURUSD

 

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

    1. R3 1.1189
    2. R2 1.1167
    3. R1 1.1148
  1. PP 1.1126
    1. S1 1.1107
    2. S2 1.1085
    3. S3 1.1066

 

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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD loses 1.1800 amid escalaing US-Sino tensions

EUR/USD dips sub-18 after the US reported an increase of 1.763 million jobs in July, better than estimated but pointing to a deceleration. Escalating Sino-American tensions are boosting the dollar and fiscal talks are eyed. 

EUR/USD News

GBP/USD resumes decline, weighed by UK concerns, US-China conflict

GBP/USD trades at fresh weekly lows below 1.3050 as the dollar got a sudden boost from mounting tensions between the world's two largest economies. UK Chancellor Rishi Sunak said the furlough scheme that is underpinning the economy cannot last forever.

GBP/USD News

XAU/USD drops $50 from record highs to the $2020 area

Gold prices are falling sharply on Friday, trading below $2040/oz at the moment. Earlier on Friday, the yellow metal reached at $2075, a new record high.

Gold News

Bitcoin may extend the recovery once Gold resumes the rally

Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.

Read more

WTI drops 1% to $41.50 ahead of US NFP, rigs data

WTI (futures on Nymex) is on a steady decline so far this Friday, undermined by reduced demand for higher-yielding assets amid the renewed US-China tensions induced risk-aversion.

Oil News

Forex Majors

Cryptocurrencies

Signatures