EURUSD recovers after dip to 1.1291 but risk of deeper pullback remains in play

Slobodan Drvenica Windsor Brokers

EURUSD The Euro fell across the board after ECB said that markets misread the comments from President Draghi on Tuesday which sent the single currency to one-year high. Draghi intended to prepare markets for decision on stimulus later this year but not making firm commitment as markets understood his message. The Euro fell to session low at 1.1291 after hitting fresh one-year high against the greenback at 1.1388 earlier today, with dip being contained by 4-hr Tenkan-sen. The price bounced quickly above 1.1300 handle which now acts as strong support, averting immediate danger seen on sustained break below 1.1300 support. The move is for now seen as extended consolidation before fresh extension higher and attack at next targets at 1.1414/28, with daily close above 1.1300 needed to confirm scenario. However, overbought slow stochastic on daily chart warns of deeper correction which may extend towards 1.1250 (converged ascending daily Tenkan-sen/Kijun-sen lines) possibly to 1.1215 (20SMA) in extension, on close below 1.1300 handle. Shape of today's daily candle after closing will be also in focus for further signals.

Res: 1.1388; 1.1400; 1.1414; 1.1428
Sup: 1.1320; 1.1391; 1.1250; 1.1215

Interested in EUR/USD technicals? Check out the key levels

1. R3 1.1572
2. R2 1.1461
3. R1 1.1401
PP 1.1290
1. S1 1.1230
2. S2 1.1119
3. S3 1.1059

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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