Euro Rebounds, But Still Looks Bearish
- The Euro has rebounded handsomely following the decline through our short term targets in the overnight. Finding support near the 1.3050 barrier, the single currency has corrected back to test the 1.3140/1.3150 resistance area – currently trading at 1.3121.
- Although there is additional upside momentum taking place, the current trend seems a bit weak, and we anticipate the 1.3050 to hold once again. Resistance provided by the 200 EMA is solidifying the barrier – indicating a likely consolidation ahead for the afternoon trade.
- With the downside outlook intact, support targets at 1.3100 remain feasible with a break below opening scope for a move lower to 1.3050 and medium term support at 1.3000.
- Any upside moves will remain dependent on a penetration of the 1.3050 resistance level. Should the barrier fail to hold, upside resistance targets will be move higher to 1.3200.
More Euro Technical Outlooks - Is The Euro Set To Move Lower?