EUR/USD outlook: Recovery needs further positive signals to resume
|EUR/USD
The Euro regained traction and bounced 0.3%, after pullback from 1.0895 (May 16 high) was repeatedly rejected at 100DMA (1.0814), generating initial signal of a double-bottom and potential end of corrective phase.
Fresh strength so far retraced over 50% of 1.0895/1.0812 pullback and on track complete bullish engulfing pattern on daily chart, which would reinforce reversal signal.
Daily MA’s returned to bullish setup, with 10/200DMA golden cross and converged 20/200DMA’s about to form another cross, while positive momentum remains strong and adds to improved technical picture.
Better than expected May PMI data from Germany and Eurozone, released earlier today, positively impacted the single currency by adding to bets for ECB’s June rate cut, however, upbeat US PMI data partially offset the positive impact.
Daily close above broken 50% retracement level (1.0853) will be a minimum requirement to keep fresh bulls intact for further recovery and possible attack at key near-term barriers at 1.0891/95 (Fibo 76.4% / May 16 peak.
On the other hand, dip and close below rising 10DMA (1.0838) would weaken near-term structure and risk renewed attack at key 100DMA support, loss of which would shift near-term focus to the downside.
Res: 1.0838; 1.0885; 1.0891; 1.0942.
Sup: 1.0838; 1.0814; 1.0786; 1.0760.
Interested in EUR/USD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.