EURUSD: Limited Consolidation Expected Before Further Downward Movement

On Apr 16, 2024

EURUSD rose slightly from its recent 5 ½ month low of 1.0602 on Tuesday, driven by profit-taking as daily indicators signaled oversold conditions.

Short-term sentiment has turned overwhelmingly bearish, influenced by a significant weekly bearish candle that saw the pair drop 1.8% last week.

Any upward movements are likely to be met with selling pressure, particularly around the 1.0700 zone, which represents a key former low from February 14, a psychological level, and the Fibonacci 38.2% retracement of the bearish move from 1.0885 to 1.0602.

A breach of support levels at 1.0600, marked by the recent low and the Fibonacci 38.2% retracement of the rally from 1.0052 to 1.1275, would pave the way for a test of the weekly cloud base at 1.0502 and the October 13 low at 1.0495.

Res: 1.0665; 1.0695; 1.0710; 1.0743

Sup: 1.0602; 1.0516; 1.0495; 1.0448