EUR/USD outlook: Bulls regain control and look for retest of key barriers
|EUR/USD
EURUSD regained traction on Wednesday after moving within wide swings but without direction in past two days.
Fresh strength looks for retest of pivotal barriers at 1.0768/71 (55DMA/daily cloud base), which capped Monday’s attack.
Technical studies are mixed on daily chart (rising bullish momentum / conflicting MA’s/price weighed by thickening daily cloud).
Mixed PMI data from EU and Germany missed to impact the pair significantly, with US ADP report and PMI data) due later today, expected to provide signals.
Watch reaction on cloud base, with repeated failure here to signal that bulls might be running out of steam and that the downside is still vulnerable.
However, close below daily Tenkan-sen (1.0721) and filling Monday’s will be needed to signal that bears regained control for retest of 1.0666 base and possible acceleration towards 1.0601 (2024 low).
Alternatively, penetration of daily cloud would generate initial bullish signal, which will look for boost on break of daily Kijun-sen (1.0791) and confirmation on lift above daily cloud top (1.0808).
Res: 1.0764; 1.0771; 1.0791; 1.0808.
Sup: 1.0736; 1.0721; 1.0700; 1.0666.
Interested in EUR/USD technicals? Check out the key levels
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