EUR/USD outlook: Weak data deflate Euro but larger bulls remain in play

Slobodan Drvenica Windsor Brokers

EUR/USD

EURUSD was sharply down on Monday morning after weaker than expected German and French PMI’s (German manufacturing PMI at 40.3 warns of recession) soured sentiment.

Fresh weakness adds to reversal signals from recent repeated strong upside rejections on approach to pivotal 1.1200 barrier (Aug 26 high / round-figure).

Bears cracked lower pivots at 1.1100 zone (50% retracement of 1.1021/1.1189 upleg / rising 10 DMA) but need to register a clear break lower to signal continuation and expose next targets at 1.1073/46 (Fibo levels 61.8% and 76.4%).

However, larger picture is bullish and broader uptrend to remain in play as long as floor of recent consolidation range / psychological (1.1000) stays intact.

In such scenario the pair would hold in prolonged consolidation, before bulls regain strength for fresh attempt through 1.1200.

Res: 1.1117; 1.1145; 1.1167; 1.1189.
Sup: 1.1087; 1.1073; 1.1046; 1.1000.

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

1. R3 1.1231
2. R2 1.1206
3. R1 1.1185
PP 1.1161
1. S1 1.1139
2. S2 1.1115
3. S3 1.1093

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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