EURUSD Chart Technical Outlook has prime resistance at 1.0860, bears are ready to fade it
EUR/USD’s broad bias is bearish. Prices posted a top in mid-March, close to a 61.8% Fibo level, followed by lower highs and lower lows since then. Sticky inflation has supported USD, and the Fed has been projecting higher numbers in recent Dot Plots. Despite the projection of three rate cuts this year, initially cheered by investors, lower cuts could be expected as signaled by the Fed’s Bostic. The US PCE price index will be watched closely for clues later this week.
I expect more downside price action; any rally could be sold. 1.0860 is prime resistance – a confluence of the previous Friday’s high, the previous week’s POC, and the daily ATR range.
Resistances: 1.0860, 1.0940
Supports: 1.0770, 1.0700
