EURUSD: Bears Test Crucial Support Zone

For the third consecutive day, the Euro has sustained losses, with a noticeable decline seen early on Thursday. It has breached significant support levels around the 1.0800/1.0790 area, which previously served as a higher base, coinciding with the Fibonacci 61.8% retracement level of the move from 1.0695 to 1.0981, as well as the base of the substantial daily Ichimoku cloud.

The technical outlook on the daily chart is distinctly bearish, characterized by a rise in negative momentum and a bearish cross between the Tenkan and Kijun-sen lines. This reinforces the downward pressure, with a close below the cloud base anticipated to confirm the negative signal and pave the way for a continuation of the downtrend initiated from the peak of 1.0981 recorded on March 8th.

An important Fibonacci level at 1.0762, corresponding to 76.4% of the range between 1.0695 and 1.0981, emerges as the initial target. Beyond this lies a crucial short-term support level at 1.0695, established as the low point for the year 2024 on February 14th.

The prevailing bias in the near term is anticipated to favor the bears as long as the price remains below the now breached 200-day moving average, situated at 1.0835, which has reverted to serving as a formidable resistance level.

Res: 1.0804; 1.0835; 1.0850; 1.0875

Sup: 1.0762; 1.0732; 1.0695; 1.0611