EUR/USD Outlook: Extended Consolidation To Precede Final Push Towards Key Supports

Technical analysis of Forex market

The EURUSD is holding near the new multi-week low in early European trading on Friday, after strong upside rejection and subsequent drop on Thursday.

The short-lived positive impact from ECB resulted in a brief correction which was capped by initial barriers (falling 10/20DMA’s).

Upbeat German PMI data keep the pair afloat, but the reaction was so far minor.

Thursday’s bearish daily candle with long upper shadow, weighs on near-term action, with negative daily studies, adding to the bearish outlook.

Formation of multiple death crosses (10/200, 20/200, 30/200 DMA’s) provided additional negative signals for the continuation of larger downtrend and attack at key targets at 1.1704/1.1694 (2021 low/Fibo 38.2% of 1.0635/1.2349 rally).

Friday’s close below falling 20DMA (1.1829) to confirm bearish bias.

Res: 1.1801, 1.1829, 1.1850, 1.1881.
Sup: 1.1751, 1.1737, 1.1704, 1.1694.