FOREX

EUR/USD outlook: Bears Pressure Again Key Fibo Support But Risk of Another Rejection Here Exists

The Euro continued to move lower on Thursday, driven by soured risk sentiment over rising concerns of new coronavirus wave.

Bears attack again key support at 1.1212 (Fibo 38.2% of 1.0870/1.1422 / 17/12 June lows), where two attempts so far stalled.

Daily techs lack clearer direction as MA’s are in mixed setup, momentum is falling and stochastic entering negative territory.

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US weekly jobless claims fell more than expected and continuing claims remain above 20 million that deflate dollar and may save the single currency of breaking key support for the third time.

Such scenario would work in favor of dip-buyers, but more work at the upside (lift and close above 10DMA at 1.1291) would be required to neutralize bears and shift near-erm focus higher.

Caution on firm break of 1.1212 Fibo support and 20DMA (1.1186) which could spark acceleration towards 1.1081 (Fibo 61.8% of 1.0870/1.1422 / 30DMA).

Res: 1.1261; 1.1291; 1.1353; 1.1383
Sup: 1.1212; 1.1186; 1.1146; 1.1081

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