Forex Technical Outlook EURUSD 03.08.2017
EURUSD – bulls target 1.2000 but corrective easing may precede
The Euro is consolidating in mid 1.1800 zone in early Thursday’s trading after bulls cracked 1.1900 barrier and posted new high at 1.1910 in late Wednesday (the highest since Jan 2015). Mixed Services PMI numbers from the Eurozone did not impact the price significantly, with near term focus on EU Retail Sales and Friday’s US jobs data. The pair is trading is strongly overbought conditions which continue to warn of pullback (slow stochastic and RSI are emerging from o/b territory on daily chart, accompanied with strong upside rejection yesterday). Broken bull channel resistance line continues to support and contained past two days dips, marking initial support at 1.1820. Dip buying strategy remains favored for final push towards target at 1.2000, with near term action likely to remain quiet ahead of US data tomorrow, which are expected to generate stronger signal.
Res: 1.1860; 1.1910; 1.1950; 1.1975 Sup: 1.1820; 1.1793; 1.1769; 1.1745