FxWirePro: EUR/USD outlook weaker on renewed downside pressure

The EUR/USD pair declined sharply on Thursday as the pair attracted sellers as uncertainty over US monetary policy strengthened the demand for dollar. 

• The pair hit daily lows at 1.1070 levels before recovering to trade at 1.1101 level.
• The ongoing weakness is set to continue for this pair as the resistance level at 1.1127 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
• Technically the pair has extended its decline below its 21 DMA, the RSI in the 4 hour chart is indicating downwards at 38, meanwhile the 55, 30 and 20 MA's are pointing strong bearish momentum towards lower side. Overall the technical indicators are depicting further downtrend for this pair.
• To the upside, the strong resistance can be seen at 1.1127, a break above will take the pair towards next resistance level at 1.1187.
• To the downside immediate support can be seen at 1.1072 levels, a break below will open gates towards 1.1000 levels.

Recommendation: Go short around 1.1120, targets 1.1050, 1.1000, SL 1.1180

Resistance Levels

R1: 1.1127 (50% Retracement level)

R2: 1.1187 (61.8% Retracement level)

R3: 1.1240 (Feb 5th  highs)

Support Levels

S1: 1.1072 (38.2% Retracement level)

S2: 1.1000 (Psychological levels)

S3: 1.0950(Feb 3rd lows)