Wed, Jun 29, 2022 @ 00:31 GMT
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EUR/USD Outlook: Negative Fundamentals Weigh Heavily and May Stall the Recovery

The Euro eases on Friday but is on track for the first bullish weekly close in six weeks that adds to positive signals as Doji reversal pattern is forming on weekly chart.

On the other side, fresh bulls face difficulties at pivotal Fibo barrier at 1.1069 (38.2% of 1.1494/1.0806), although Thursday’s action registered a close above this level, as there is a threat of formation of a bull-trap on weekly chart if the price fails to end week above this level.

Daily studies showed a slight improvement, but remain overall negative, as bearish momentum starting to strengthen after a brief easing, which keeps the downside vulnerable. The risk is also seen on a drop and close below psychological 1.10 level (also near 38.2% retracement of 1.0806/1.1137 recovery).

Fundamentals also do not work in favor of the single currency, as Fed raised interest rates and signaled increased pace of further hikes, diverging from the ECB, which still keeps rates at zero, while growing pessimism over the situation in Ukraine, continues to dampen risk appetite.

Pivotal levels at the downside lay at 1.10 and 1.0973 (10DMA) while 1.1069 (Fibo) and 1.1079 (20DMA) mark upper triggers.

Res: 1.1069; 1.1079; 1.1137; 1.1150.
Sup: 1.1000; 1.0973; 1.0950; 1.0900.

Windsor Brokers Ltd
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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