EURUSD @ 1.0834 bearish – Resistance cluster is capping the bounce
EURUSD stalled at 1.1060 (December 15, 2015 range high, near the 200 day moving average), shy of the 1.1123 retracement level (61.8% of the 1.1494/1.0517 fall) and the 18-month down trendline from May 5, 2014 peak). While the area caps, bears gained the upperhand, pulling back 50% of the 1.0520/1.1060 rise. A clean break below the 1.0796 support (December 7, 2015 low) would reinforce the tough resistance at 1.1060 and weaken towards the 1.0520 low (December 3, 2015).
However, if the 1.0796 area holds dips, the pair could be range-bound for a while under the 1.1060 ceiling. A push through the latter is needed to extend the recovery from the 1.0520 low to challenge the 1.1123 area.
Outlook:
Intraday: bearish
Daily: bearish
Weekly: neutral
EURUSD stalled at 1.1060 (December 15, 2015 range high, near the 200 day moving average), shy of the 1.1123 retracement level (61.8% of the 1.1494/1.0517 fall) and the 18-month down trendline from May 5, 2014 peak). While the area caps, bears gained the upperhand, pulling back 50% of the 1.0520/1.1060 rise. A clean break below the 1.0796 support (December 7, 2015 low) would reinforce the tough resistance at 1.1060 and weaken towards the 1.0520 low (December 3, 2015).
However, if the 1.0796 area holds dips, the pair could be range-bound for a while under the 1.1060 ceiling. A push through the latter is needed to extend the recovery from the 1.0520 low to challenge the 1.1123 area.
Outlook:
Intraday: bearish
Daily: bearish
Weekly: neutral