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Denis Sergienko • 2021-06-18

EURUSD bounces off key Fibonacci retracement but bears remain hopeful

EURUSD bounces off key Fibonacci retracement but bears remain hopeful

EURUSD fades bounce off 61.8% Fibonacci retracement of November 2020 to January 2021 upside amid fresh selling pressure witnessed ruing early Friday. However, oversold RSI conditions test the quote’s further selling below the key Fibo. level surrounding 1.1885. In a case where the bears dominate past 1.1885, the early March’s low near 1.1835 and the 1.1800 round figure could entertain them ahead of an upward sloping support line from September 2021 near 1.1740.

Meanwhile, recovery moves need to cross the 200-DMA level of 1.1990, also the 1.2000 psychological magnet, to restore the upside momentum targeting the 1.2100 threshold. During the run-up, the mid-May low near 1.2050 can act as an intermediate halt. It should, however, be noted that the quote’s run-up beyond 1.2100 will battle the 1.2160 and the 1.2210 resistances before chasing the 1.2265-70 key hurdle to the north. Overall, EURUSD remains bearish following the clear downside break of the important moving average but short-term pullbacks can’t be ruled out.

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