EUR/USD Outlook: Euro Bounces But Recovery Still Holds Below Pivotal Barriers

Technical analysis of Forex market

The Euro bounces from multi-week low at 1.1183 after strong bears stalled just ahead of key supports at 1.1186/76, boosted by strong EU data (Services PMI Mar 53.3 vs 52.7 f/c; Retail Sales Feb 2.8% y/y vs 2.3% f/c; 2.2% prev).

Stronger pound on renewed Brexit optimism also boosted Euro, with strong technical signals on reversal of slow stochastic from deep oversold territory and strengthening momentum, adding to fresh bullish tone.

Signals are still mixed as north-heading momentum and stochastic conflict with south-heading MA’s in full bearish setup.

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Recovery stays below falling 10SMA (1.1260) break of which is needed to generate initial bullish signal on completion of hammer reversal pattern, confirmation of which requires extension and close above 1.1284 (20SMA/Fibo 38.2% of 1.1448/1.1183 descend).

Res: 1.1246; 1.1260; 1.1284; 1.1303
Sup: 1.1220; 1.1200; 1.1186; 1.1176

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