Sat, Apr 01, 2023 @ 04:23 GMT
HomeContributorsTechnical AnalysisTechnical Outlook: EURUSD - Bearish Technicals Favor Further Downside, Daily Cloud Base...

Technical Outlook: EURUSD – Bearish Technicals Favor Further Downside, Daily Cloud Base Is key

The Euro was in red in Asia but still holding above daily cloud base at 1.0583 that so far marks significant support, as Monday’s probe below failed to sustain break.

Multiple daily MA’s bear crosses continue to weigh, as bearish momentum is building up and favoring further easing.

Near-term action is also pressured by thick falling hourly cloud (spanned between 1.0598 and 1.0624) with bearish bias expected to remain while the price stays below the cloud.

On the other side, prolonged consolidation above fresh lows at 1.0570 could be expected while daily cloud top (1.0612) caps, as oversold slow stochastic on daily chart is struggling to break above oversold territory and generate bullish signal. However, talks of delay of US tax reform would support the Euro.

Good offers lay at 1.0600/25, with extended uptick not to exceed broken Fibo 61.8% barrier at 1.0650.

Resumption of downtrend from 1.0905 needs clear break below daily cloud base to expose interim support at 1.0524 and key short-term support at 1.0493 (02 Mar low).

The Euro is eyeing release of German/EU ZEW economic sentiment data for firmer signals

Res: 1.0598, 1.0612, 1.0625, 1.0650
Sup: 1.0578, 1.0568, 1.0524, 1.0493

Windsor Brokers Ltd
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.

Featured Analysis

Learn Forex Trading