EUR/USD outlook: Daily cloud base to cap corrective upticks and keep larger bears in play

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro is keeping slight bullish bias in early Monday and probing above broken Fibo support at 1.0879 (61.8% of 1.0635/1.1275 rally), as oversold stochastic on daily chart points to some price adjustment before larger bears regain control.

Friday’s Doji and brief advance in Asia/early Europe on Monday generate initial signal that bears may take a breather for limited correction, which should provide better selling opportunities.

Momentum indicator remains in negative territory and MA’s in bearish setup, pointing to overall bearish near-term structure, with additional negative signal generated on last week’s close below 1.0879 Fibo support.

Falling 10DMA (1.0916) offers initial resistance, followed by 100DMA (1.0930) and the base of thickening daily cloud (1.0942), which should cap upticks and keep larger bears in play for acceleration towards 1.0786 (Fibo 76.4% of 1.0635/1.1275).

Res: 1.0916; 1.0930; 1.0942; 1.0955.
Sup: 1.0869; 1.0845; 1.0831; 1.0800.

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

1. R3 1.0944
2. R2 1.0919
3. R1 1.0895
PP 1.087
1. S1 1.0846
2. S2 1.0821
3. S3 1.0798

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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