The Euro remains firmly in red and extends lower on Friday, following previous day’s 0.5% fall, which completed bull-trap pattern on daily chart and shifted near-term focus lower.
The single currency came under pressure after strong upside rejection on Wednesday, with further acceleration lower sparked by hawkish Fed on Thursday.
Bears now look for retest of key supports at 1.1311 (200WMA) and 1.1300 (lows of 15 Aug / 31 Oct) but may again face strong headwinds here.
Momentum turn up on daily chart while slow stochastic nears oversold territory support scenario.
Failure on initial attack at 1.1311/00 pivots would result in rebound which could be seen as positioning ahead of final break lower.
Falling 10SMA marks initial resistance at 1.1377, with stronger upticks expected to stall under 1.1400 (daily Tenkan-sen) and keep bears alive.
The pair is on track for the fourth straight bearish weekly close, with long upper shadow on the weekly candle weighing.
Eventual break below 1.1300 zone would signal continuation of larger downtrend from 2018 high at 1.2555 towards next strong support at 1.1186 (Fibo 61.8% of 1.0340/1.2555 rally).
Res: 1.1368; 1.1377; 1.1400; 1.1425
Sup: 1.1311; 1.1300; 1.1255; 1.1226
Interested in EURUSD technicals? Check out the key levels
- R3 1.1517
- R2 1.1482
- R1 1.1421
- PP 1.1387
- S1 1.1326
- S2 1.1291
- S3 1.1231
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.