EURUSD Technical Outlook: Resume Bearish

It shows that EURUSD is resuming the bearish movement after a consolidation. Last week it broke short-term support at 1.1100. Now the more bearish movement is expected to target 1.0550. The USD seems to be strong on a fundamental view. Recent fundamental data including NFP results is quite hawkish for USD and the stock and bond market is seems to be rising. On the other hand, EURO seems to be weak from the recent fundamental data. So, further bearish movement can be expected on EURUSD.

 

 EURUSD Resumes Bearish Trend After Consolidation

In this week’s EURUSD Technical Outlook, we observe that the pair is resuming its bearish movement following a period of consolidation. Last week’s break below the short-term support level at 1.1100 signaled a continuation of the downtrend. This analysis highlights the critical levels and fundamental factors driving the EURUSD pair’s current trajectory.

Key Support and Target Levels

The break of the 1.1100 support level is a significant technical development, indicating further bearish potential. The next target for the EURUSD is now set at 1.0550, a level that traders should watch closely. This bearish outlook is supported by both technical indicators and fundamental data.

USD Strength Supported by Hawkish Fundamentals

From a fundamental perspective, the USD appears robust. Recent economic data, including the Non-Farm Payroll (NFP) results, have been hawkish, indicating strong economic performance in the United States. This has contributed to the rising stock and bond markets, further strengthening the USD.

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EUR Weakness Evident in Recent Data

Conversely, the Euro has shown signs of weakness. Recent fundamental data from the Eurozone has not been as favorable, contributing to the bearish sentiment in the EURUSD pair. The divergence in economic performance between the US and the Eurozone is a critical factor in the pair’s current downtrend.

Key Levels to Monitor

– Broken Support Level:1.1100 (now a resistance level)
– Bearish Target: 1.0550 Fundamental Events to Watch

Traders should keep an eye on upcoming economic reports and central bank statements from both the US and Eurozone. These events can provide further insights into the strength of the USD and the EUR, potentially influencing the EURUSD’s direction.

Conclusion

In conclusion, the **EURUSD Technical Outlook** points to a resumption of the bearish movement after breaking below the key support level at 1.1100. With the USD showing strength backed by strong economic data and the Euro exhibiting weakness, the bearish trend is expected to continue toward the target level of 1.0550.

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