EURUSD risks extended correction towards 1.0700

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro remains biased lower after past two days in red and sees scope for extension of pullback from 1.0905 towards next strong support at 1.0700 (daily Kijun-sen / 50% retracement of 1.0493/1.0905 upleg).
Near-term action is holding in narrow consolidation above hourly base at 1.0738 (lows of 29 Mar / today), with risk shifted lower on weak near-term studies.
Extension of bear-leg from 1.0905 requires sustained break below 1.0748 (Fibo 38.2% of 1.0493/1.0905, as previous two attempts failed to close below this pivot).
However, daily studies remain bullish overall and see fresh upside attempts on completion of current corrective phase.
Extended dips on breach of 1.0748 pivot, should be ideally contained above 1.0700, to keep scenario in play.
Otherwise, increased downside risk could be anticipated on loss of 1.0700 support.

Res: 1.0768; 1.0784; 1.0825; 1.0841
Sup: 1.0748; 1.0738; 1.0700; 1.0673

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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