The EURUSD continued its bearish momentum yesterday, topped at the 1.1151 levels, and bottomed at the 1.1061 levels. Now focus will shift on the key support 1.1061 ?!!!
The EURUSD will have to hold below the 1.1061 levels on a daily closing basis to push the market for further downside losses, If seen, focus will shift on the 1.0950 levels, a halt is likely and reversal may occur here, However; If the market fails on the 1.0950 levels, expect further weakness towards the 1.0800 levels…
Alternatively, a failure to hold below the 1.1061 levels could mean a return to the 1.1151 levels, a halt is likely, but a break above the 1.1151 levels on a daily closing basis will restore the upside momentum and reverse risk to the upside, If seen, focus will shift on the 1.1297 levels, a halt could be seen, but further upside will retake the 1.1466 levels.
In all, as long as 1.1151 resistance holds on a daily closing basis, outlook in EURUSD remains on the downside towards 1.0950 levels ahead of the 1.0800 levels, above 1.1151 will reverse risk towards the 1.1297/1.1466 levels.
On the 4 hour chart, the pair is neutral, trapped within 1.1061/1.1144 range, momentum indicators show a lack of downside momentum, however; sustained breakout – 4 hour closing – above the 1.1144 levels will put the pair in recovery mode, If seen, It will recapture the 1.1331 levels, a halt is likely but a break would turn outlook bullish towards the 1.1450 levels. On the downside, If the key support 1.1061 gives away, expect further weakness towards the 1.0960 levels ahead of the 1.0900 levels.