EUR/USD outlook: Violation of psychological 1.07 support signals bearish continuation

Slobodan Drvenica Windsor Brokers

EUR/USD

Probe through psychological 1.07 support in early Tuesday adds to negative signals as larger bears off 2023 high (1.1095) resume after hesitating at 1.07 level in past two days.

Daily studies remain in full bearish setup and maintain downside pressure for attack at 1.0652 (Fibo 76.4% of 1.0516/1.1095 rally) and 1.0600 zone in extension, though break of 1.0700 pivot needs to be confirmed by daily close below this level.

Oversold conditions on daily chart suggest that bears may enter consolidation in coming sessions, with upticks to be ideally capped at 1.0737/58 zone (broken Fibo 61.8% / falling 10DMA) and offer better levels to re-enter bearish market.

Overall bias is expected to remain with bears while the price remains below the base of thick daily cloud (1.0796).

Res: 1.0700; 1.0737; 1.0758; 1.0796.
Sup: 1.0652; 1.0631; 1.0600; 1.0551.

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

1. R3 1.0771
2. R2 1.0757
3. R1 1.0733
PP 1.0719
1. S1 1.0695
2. S2 1.0681
3. S3 1.0657

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.

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