EUR/USD has extended its weekly slide toward 1.1000. Unless the pair stages a technical correction and reclaims 1.1060, buyers are unlikely to be convinced of a steady rebound and show interest in the euro, FXStreet’s Eren Sengezer reports.

Former support level at 1.1060 now acts as first resistance

“The European economy is likely to suffer more than the US economy from a prolonged conflict between Russia and Ukraine, suggesting that the fundamental outlook continues to favour the dollar in current circumstances.”

“1.1000 (psychological level) support could hold in the short term and the pair could stage a correction before the next attempt. In case buyers fail to defend that support, the next bearish target is located at 1.0960 (static level).”

“Former support of 1.1060 now aligns as initial resistance. As long as this level stays intact, sellers should continue to dominate the pair’s action.”

“Above 1.1060, 1.1100 (psychological level, 20-period SMA) could be seen as the next resistance before 1.1150 (static level).”

This article was originally published by Fxstreet.com.Read the original article here.

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