EURUSD makes another attempt to break through key Fibonacci resistance

The Euro maintains a constructive tone and once again tests the key Fibonacci resistance at 1.1570 (38.2% retracement of the 1.1728/1.1468 decline), as the recovery from 1.1468 was strengthened by a bear-trap formation on the weekly chart, just below the Kijun-sen.

Repeated failures to close above this level in the past two sessions, with upticks capped by the 20-day moving average, highlight the importance of this barrier.

Technical signals remain mixed, as the developing 55/200-day moving average death cross weighs on the outlook, along with negative momentum and a stochastic indicator nearing overbought territory. However, the formation of a 5/10-day bull cross offers a modestly positive counter-signal.

The dollar continues to weaken against major peers amid renewed expectations for a Federal Reserve rate cut. Economists remain confident in the resilience of the U.S. economy and inflation, though pending economic data—delayed by the government shutdown—are expected to provide a clearer picture once released.

Traders are closely watching the reaction at the 1.1570 pivot. A daily close above this level would improve sentiment and open the way for a test of the next key resistances at 1.1590/98 (20DMA / 50% Fibo), with a break above these levels signaling a continuation of the bullish phase toward 1.1630 (61.8% Fibo) and 1.1655 (daily cloud base).

On the downside, repeated failures at 1.1570 could cap upside attempts, though the broader bias should remain bullish as long as the pair holds above the 10DMA at 1.1543.

Additionally, stronger-than-expected Eurozone ZEW economic sentiment data for November may provide near-term support to the single currency.

Res: 1.1590; 1.1611; 1.1630; 1.1667
Sup: 1.1543; 1.1500; 1.1446; 1.1391