Mon, Mar 01, 2021 @ 06:11 GMT
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Technical Outlook: EURUSD – Techs Suggest Further Weakness After Consolidation

The Euro is consolidating above fresh post-Fed lows at 1.1865 zone in early Thursday, with scope seen for further downside.

The single currency was sharply lower on hawkish tone after FOMC September’s meeting. Fed signaled one more rate hike this year and plans three hikes in 2018, as well as start of reducing its portfolio in October.

Wednesday’s bearish acceleration was contained by daily Kijun-sen (1.1877) which was dented but without close below, leaving space for consolidation before bears resume.

Bearish Engulfing on Wednesday as well as formation of H&S pattern on daily chart is strong bearish signal which requires break below Kijun-sen as initial support and the H&S pattern’s neckline at 1.1842 for confirmation.

Fresh bears may travel towards 1.1720 (daily cloud top / Fibo 38.2% of 1.1118/1.2092 upleg) and 1.1662 (17 Aug trough) in extension.

Corrective upticks are seen as selling opportunities and should be capped by hourly cloud (spanned between 1.1967 and 1.1994).

Conversely, return above 1.2000 will be bullish signal.

Res: 1.1900, 1.1926, 1.1967, 1.1994
Sup: 1.1877, 1.1861, 1.1842, 1.1826

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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