EURUSD – weakening daily technicals increase downside risk

EURUSD

The Euro fell near recent lows at 1.1130/40 zone after recovery attempts were repeatedly capped by 20SMA and hawkish comments from Fed policy maker William Dudley boosted the dollar.

Monday’s long red daily candle and 10/20SMA bear cross weigh on near-term action which puts last week’s low at 1.1132 and more significant 1.1121/09 supports (Fibo 38.2% of 1.0839/1.1295 upleg / 30 May low) under renewed pressure.

Fresh near-term bears were so far contained by bull-trendline, connecting 1.1109/1.1132 lows and rising daily Kijun-sen, however, negative near-term studies and daily technicals gaining bearish momentum, see risk of further weakness.

Firm break below 1.1121/09 pivots is required to signal bearish resumption and open next targets at 1.1067 and 1.1013 (Fibo 50% and 61.8% retracement of 1.0839/1.1295 upleg respectively).

Limited upside action is seen as focus is turning lower, with extended upticks expected to stay below widening hourly cloud (cloud base is currently at 1.1178).
Falling 10SMA is maintaining downside pressure.

Alternative scenario needs bullish acceleration and close above 20SMA / daily Tenkan-sen (1.1207/13 respectively) to neutralize rising downside risk.

Res:  1.1165; 1.1178; 1.1193; 1.1207
Sup:  1.1140; 1.1132; 1.1121; 1.1109

eurusd

 

Interested in EURUSD technicals? Check out the key levels

    1. R3 1.1226
    2. R2 1.1218
    3. R1 1.1211
  1. PP 1.1203
    1. S1 1.1197
    2. S2 1.1189
    3. S3 1.1182

 

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.