HomeContributorsTechnical AnalysisEUR/USD Outlook: Bears Are Pausing Above Strong 1.16 Support Zone

EUR/USD Outlook: Bears Are Pausing Above Strong 1.16 Support Zone

The Euro is consolidating above new multi-week low (1.1562) posted last week after larger bears cracked key 1.16 support zone (Sep/Nov 2020 higher base) and registered a marginal weekly close below here.

Overall structure remains negative and favors bearish continuation, but oversold daily studies suggest bears may take a breather above 1.1600 zone.

Consolidation should be capped by solid barriers at 1.1659/64 (daily Tenkan-sen/former low of Aug 20) to keep bears intact and offer better levels to re-enter larger bearish action.

Firm break of 1.1600 pivots would expose next key supports at: 1.1572 (cracked 200WMA), 1.1538 (weekly cloud base) and 1.1492 (50% retracement of 1.0635/1.2349, Mar 2020/Mar 2021 uptrend), break of which would confirm reversal.

Last week’s large bearish weekly candle (the pair was down 1.13% for the week, thee biggest weekly fall since the third week of June) weighs on near-term action, while firm dollar adds pressure on the single currency.

Caution on break above 1.1659/64 barriers that would signal stronger correction, which would require verification on sustained break above 1.1700 zone (Fibo 38.2% of 1.1909/1.1562/psychological).

Res: 1.1660, 1.1695, 1.1736, 1.1761.
Sup: 1.1587, 1.1562, 1.1538, 1.1492.

Windsor Brokers Ltd
Windsor Brokers Ltdhttp://www.windsorbrokers.com/
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

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