EUR/USD Outlook: Bulls Struggle At 100SMA, No Clear Direction Signal As Techs Are Mixed

Technical analysis of Forex market

The Euro holds in green for the third straight day and extended advance to new two-week high at 1.1450.

Bulls were capped by 100SMA so far and may struggle to break higher despite strong bullish signal generated on Monday’s close above daily cloud top (1.1418), as technical studies on daily chart are mixed (bearish momentum is strengthening and slow stochastic is overbought) that produces negative signal, while MA’s (10/20/30/55) are in bullish setup.

Repeated close above cloud top would give bulls additional boost, but cloud twists next week, requiring caution.

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Return and close below within the cloud would generate negative signal and risk further weakness.

Bullish scenario requires close above 100SMA and violation of next pivotal barrier at 1.1462 (Fibo 61.8% of 1.1569/1.1289) to signal extension of bull-leg from 1.1289 (24 Jan low).

Res: 1.1450, 1.1462, 1.1489, 1.1503
Sup: 1.1429, 1.1418, 1.1396, 1.1377

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