EURUSD extends weakness on data; 1.0700 pivot came under pressure

Slobodan Drvenica Windsor Brokers

EURUSD

The Euro fell further today, pressured by weaker-than-expected German inflation data and better-than-expected US GDP numbers that boosted the dollar.
The pair hit fresh 8-day low at 1.0719 so far and focusing strong support at 1.0700 (daily Kijun-sen/50% retracement of 1.0493/1.0905 upleg).
Studies on daily chart are still bullishly aligned and suggest that current correction should be ideally contained at 1.0700 zone.
On the other side, strong bearish sentiment is building up and sees risk of further easing, as the pair is on track for bearish weekly close, the first after four bullish weeks in a row.
Loss of 1.0700 handle would open a cluster of MA/Fibo supports which consist of 55; 30 and 100SMA and Fibo 61.8% of 1.0493/1.0905 rally that lies within 1.0672/26 zone.
Bounce from session low at 1.0719 is testing initial resistance at 1.0748 (broken Fibo 38.2% support) which guards session high at 1.0768 and upper pivot at 1.0783 (broken 10 SMA).
Only firm break above the latter would sideline existing downside threats and signal further recovery. Next upper trigger lies at 1.0812 (daily Tenkan-sen).

Res: 1.0768; 1.0783; 1.0812; 1.0825
Sup: 1.0719; 1.0700; 1.0672; 1.0650

Interested in EURUSD technicals? Check out the key levels

1. R3 1.0904
2. R2 1.0866
3. R1 1.0815
PP 1.0778
1. S1 1.0727
2. S2 1.0690
3. S3 1.0639

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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