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The overnight break below the 1.1055-65 confluence region might have already shifted the near-term bias back in favour of bearish traders. Haresh Menghani, an analyst at FXStreet, takes a look at the technical outlook of the EUR/USD pair. 

Key quotes

“The 1.1055 support breakpoint comprised of 100-day SMA and 61.8% Fibonacci level of its February/March rally, which should now act as a key pivotal point for intraday traders.”

“A sustained strength beyond might prompt some short-covering move and lift the pair back above the 1.1100 round-figure mark, though is likely to face stiff resistance and remain capped near the 1.1135 region (50% Fibo. level).”

“On the flip side, weakness back below the 1.10 mark might be seen as a fresh trigger for bearish traders and set the stage for a move back towards the overnight swing low, around the 1.0955 region.”