Tue, Jan 31, 2023 @ 16:19 GMT
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Technical Outlook: The Euro Stands At The Back Foot On Monday, Deeper Correction On Break Below Hourly Cloud Base

The dollar bears are taking a breather in early Monday’s trading after North Korea stayed on hold this weekend, despite wide expectations of another provocation on their National Day and markets being cautious over the economic impact of Hurricane Irma which hit the coast of Florida. The EURUSD recent rally showed strong upside rejection just under 1.2100 barrier on Friday, which left daily candle with long upper shadow and fresh weakness on Monday threatens of competing reversal patter which could signal stronger correction. Near-term bears are so far holding above strong support zone between 1.2000/1.1990 (hourly cloud base/Fibo 23.6% of 1.1662/1.2092 upleg) but near-term risk remains shifted lower and acceleration towards next key supports at 1.1957 (daily Tenkan-sen) and 1.1940 (10SMA) could be expected on break below 1.2000/1.1990 pivot. Extended dips should ideally find support here before fresh push higher as overall structure is bullish and favors further upside after repeated close above psychological 1.2000 barrier. Key release for the Euro this week will be EU’s Industrial production which is forecasted higher in Q2 and may inflate the Euro on positive readings.

Res: 1.2025, 1.2070, 1.2092, 1.2164
Sup: 1.1990, 1.1957, 1.1940, 1.1928

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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