EURUSD Outlook: Key supports at 1.1300 zone under pressure but strong headwinds could be expected here again

Slobodan Drvenica Windsor Brokers

EURUSD

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

1. R3 1.1517
2. R2 1.1482
3. R1 1.1421
PP 1.1387
1. S1 1.1326
2. S2 1.1291
3. S3 1.1231

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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