EUR/USD has bounced off its strong Support of 1.11881 (Fibonacci 61.8%). What is next?
April 3, 2019
Technical Outlook: The EUR/USD has been trading lately under negative pressure as the US dollar continued to rise on dovish central banks worldwide. The EUR/USD has approached its lower end of its wider range (1.14498- 1.11881), represented by Fibonacci 50.0% and Fibonacci 61.8%, respectively (as depicted by the Weekly Chart below), which shows that the area lately has acted as strong support for the pair. In particular, once the pair approaches or ends below the rate of 1.1200, the moment suggests readiness on the part of many market participants to buy the EUR/USD. In the current analysis, the rate of 1.11881 acts as strong support and if the pair manages to remain above that level, it can then be expected the EUR/USD to turn to the upside and recover in value. To the upside, Resistance 1 stands at 1.14498, represented by Fibonacci 50.0%.
To the downside, the EUR/USD could come under even bigger pressure should the pair breaks below the rate of 1.11881. In this case, the EUR/USD could even target levels below 1.10 and, therefore, target Support 1 of 1.08651 (Fibonacci 76.4%).
|
Pivot Point: |
1.11881 |
|
Resistance 3: |
1.20391 |
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Resistance 2: |
1.17118 |
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Resistance 1: |
1.14498 |
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Support 1: |
1.08651 |
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Support 2: |
1.06054 |
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Support 3: |
1.03405 |
Graph: (EUR/USD, Weekly)
