HomeContributorsTechnical AnalysisTechnical Outlook: EURUSD Looks For Break Below Daily Cloud Base, 20SMA Caps

Technical Outlook: EURUSD Looks For Break Below Daily Cloud Base, 20SMA Caps

The Euro moved higher on Tuesday after bears stalled ahead of daily cloud base on Monday, but overall picture remains bearish.

Today’s bounce is seen as consolidation ahead fresh attack at cloud base, as barriers at 1.1777 (20SMA) and 1.1802 (Tenkan-sen) weigh on near-term action and expected to cap recovery attempts.

Sustained break below daily cloud base (1.1731) would expose next pivotal points at 1.1671/69 (neckline of daily H&S pattern and 16 Oct low), break of which would generate stronger bearish signal. Bearish daily studies support the notion.

PMI data from Germany / EU are in focus today with forecasts being slightly below previous releases, which could further soften the tone on release at/below forecasts.

Traders are eyeing Thursday’s ECB meeting for further signals

Res: 1.1777, 1.1802, 1.1839, 1.1851
Sup: 1.1731, 1.1725, 1.1669, 1.1612

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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