EUR/USD Outlook: Strong Rebound Extends But Overall Picture Still Bearish

Technical analysis of Forex market

The Euro extends recovery above 1.1200 barrier on Friday, following previous day’s strong bounce from new 2019 low at 1.1107 (vs previous at 1.1111, posted on 26 Apr). Bears faced strong headwinds here and subsequent bounce that left long-tailed bullish daily candle adds to positive signals. North-heading momentum approaches the centerline and supports scenario which sees a minimum requirement on close above broken 10SMA (1.1180) for confirmation. Extension above 30SMA (1.1201) would add to positive signals for further recovery, but overall bearish picture will remain intact while the action stays below 1.1263 (13 May lower top). Only firm break here would confirm double-bottom and signal stronger recovery.

Res: 1.1201, 1.1237, 1.1263, 1.1297
Sup: 1.1180, 1.1169, 1.1142, 1.1111

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