EUR/USD outlook: Looks for clearer direction signal

Slobodan Drvenica Windsor Brokers

EUR/USD

EUR/USD edged higher in Asia / early Europe on Thursday, hinting that pullback from Monday’s spike high (1.1009) might be over.

Signals of formation of a higher base at 1.0900 zone add to positive near-term outlook, as technical studies on daily chart are predominantly bullish, though sustained break above 1.0950/60 zone needed to confirm.

On the other hand, hourly studies are weakening, and recovery attempts may face headwinds on approach to 1.0950 pivot (hourly cloud top / 50% retracement of 1.1009/1.0892 pullback).

This would keep the downside vulnerable, especially on loss of 1.0925 pivot (hourly cloud base / hourly Kijun-sen), which would risk retest of 1.0900 and open way for deeper pullback on break.

Look for clearer direction signal.

Res: 1.0950; 1.0965; 1.0981; 1.1000.
Sup: 1.0925; 1.0890; 1.0875; 1.0850.

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

1. R3 1.0969
2. R2 1.0953
3. R1 1.0938
PP 1.0922
1. S1 1.0907
2. S2 1.089
3. S3 1.0875

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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