EURUSD consolidates after strong fall; bias remains on downside

Slobodan Drvenica Windsor Brokers

EURUSD

The Euro remains volatile after big fall on Thursday and trades above fresh low at 1.0587, posted today. Yesterday’s large bearish candle with long upper shadow, formed after strong upside rejection, weighs heavily on near-term price action.
Bearish studies maintain pressure for further downside, with firm break below 1.0600 handle, needed to open way towards recent lows at strong 1.0500 support zone.
Meantime, consolidation should be ideally capped under 1.0700 zone (daily Tenkan-sen at 1.0688 and Fibo 38.2% of yesterday’s fall at 1.0696).
Any break higher would signal extended consolidation ahead of final attempt below critical supports at 1.0500/1.0461. Long-legged weekly Doji candle supports such scenario.

Res: 1.0630; 1.0654; 1.0700; 1.0730
Sup: 1.0587; 1.0551; 1.0504; 1.0461

Interested in EURUSD technicals? Check out the key levels

1. R3 1.1071
2. R2 1.0972
3. R1 1.0794
PP 1.0696
1. S1 1.0517
2. S2 1.0419
3. S3 1.0241

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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