EUR/USD outlook: Looks for fresh direction signals

Slobodan Drvenica Windsor Brokers

EUR/USD

The Euro is holding within the range which extends into fourth consecutive day, pressured by the base of thickening daily cloud, but so far unable to clearly break through freshly established base at 1.0760 zone.

Near-term action remains biased lower, due to prevailing risk aversion, but looking for fresh direction signals.

The minutes of Fed’s last policy meeting is the key event today, as traders seek more information about the central bank’s interest rate path.

Also, results of debt ceiling talks are expected to impact pair’s performance.

Conflicting daily studies lack direction signal, with break of supports at 1.0760/37 (base / Fibo 61.8% of 1.0516/1.1095) to signal bearish continuation, while penetration of daily cloud (base lays at 1.0796) and extension through falling daily Tenkan-sen (1.0841) would generate initial reversal signal, which will require verification on lift above cloud top (1.0874).

The pair is on track for strong monthly fall in May and bearish engulfing is forming on monthly chart, which would add to negative outlook.

Res: 1.0796; 1.0841; 1.0874; 1.0921

Sup: 1.0737; 1.0700; 1.0652; 1.0631

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

1. R3 1.0837
2. R2 1.0819
3. R1 1.0784
PP 1.0766
1. S1 1.0731
2. S2 1.0713
3. S3 1.0678

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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