Oct 10 2017

Technical View – EURUSD

Up-move is likely to confront fresh supply near the 1.1800 handle, above which a fresh bout of short-covering could lift the pair back towards 50-day SMA hurdle near the 1.1845 region. Only a convincing break through the 50-DMA barrier would negate any near-term bearish bias and pave way for resumption of the pair’s prior appreciating move.

On the flip side, 1.1740-35 area now becomes immediate support to defend, which if broken is likely to drag the pair back below the 1.1700 handle towards retesting 1.1670 support, marked by 23.6% Fibonacci retracement level of 1.0341-1.2092 YTD up-move. Below the mentioned support, the pair is likely to accelerate the slide towards 100-day SMA support near the 1.1600 handle and the bearish trajectory could further get extended towards the key 1.15 psychological mark with some intermediate support near mid-1.1500s.