EUR/USD outlook: Rejection under key barriers keeps the downside vulnerable
EUR/USD
EURUSD hit one-month high (1.0528) in early Monday trading, in immediate reaction to German election results, but fresh gains were quickly reversed, mainly due to the lack of bigger election surprises.
Initial signs of recovery stall under significant barriers at 1.0533/73 zone (former top of Jan 27 / daily cloud top/100DMA/Fibo 38.2% of 1.1214/1.0177) would materialize if bulls repeatedly fail to clear this resistance zone and the price drops below 1.0400 pivot (Feb 19 trough/55DMA).
Conflicting daily indicators lack clearer direction signal, with little support from data showing that bloc’s inflation remains elevated, though near-term bias is expected to remain bullish while the price stays above rising 10DMA (1.0448).
Expect stronger signals on violation of either breakpoint (1.0400 at the downside and 1.0573 at the upside).
Res: 1.0506; 1.0528; 1.0547; 1.0573.
Sup: 1.0448; 1.0422; 1.0400; 1.0372.
Interested in EUR/USD technicals? Check out the key levels
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.
