EUR/USD outlook: Bulls are pausing under 1.1200 barrier

Slobodan Drvenica Windsor Brokers

EUR/USD

EURUSD edges lower on Wednesday after repeated failure to break 1.1200 barrier, but near-term action can be described as consolidation, as long as the price stays above first pivots at 1.1124/14 (trendline support/rising 10DMA) and 1.1100 (higher base/Fibo 23.6% of 1.0777/1.1201).

Negative signals are developing on daily chart (14-d momentum diverged from the price and heading south/RSI emerged from overbought territory) but still need confirmation.

Initial negative signals can be also seen on weekly chart (EURUSD is on track for weekly close in red after two long bullish weekly candlesticks/overbought conditions), but conflicting with firm bullish structure on monthly chart, as technical studies are in predominantly bullish setup and the pair is on track for the biggest monthly gain since November 2022.

Look for firmer direction signals on violation of either pivot (1.1100/1.1200).

Res: 1.1157; 1.1185; 1.1201; 1.1239.
Sup: 1.1124; 1.1114; 1.1100; 1.1039.

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

1. R3 1.124
2. R2 1.1216
3. R1 1.12
PP 1.1175
1. S1 1.1159
2. S2 1.1134
3. S3 1.1119

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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