EURUSD – Bears pressure key Fibo support at 1.1709

Slobodan Drvenica Windsor Brokers

EURUSD

The Euro remains firmly in red on Monday and extends strong fall of last week (the second biggest one-week loss in 2018). News of US-China trade war being put on hold, boosted the dollar and increase pressure on the single currency. Fresh weakness approaches the first key support at 1.1709 (Fibo 38.2% of 1.0340/1.2555), break of which would be negative signal for larger bulls off 1.0340 (Jan 2017) which are in corrective phase from 1.2555 (2018 high). Bears could extend on violation of 1.1709 and challenge next strong support at 1.1675 (top of thick weekly Ichimoku cloud). Oversold daily RSI / slow stochastic and strengthening momentum suggest bears take a breather, but firmer signal being generated so far. Corrective upticks could be seen as positioning for further weakness, with falling 10SMA (1.1843) expected to cap and keep bears intact.

Res: 1.1775; 1.1800; 1.1834; 1.1858
Sup: 1.1720; 1.1709; 1.1675; 1.1662

Interested in EURUSD technicals? Check out the key levels

1. R3 1.1887
2. R2 1.1855
3. R1 1.1814
PP 1.1782
1. S1 1.1741
2. S2 1.1709
3. S3 1.1668

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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