Support as resistance:
- Note that as price tags 1.1120, EUR/USD is testing a previous common support area.
- This support area could turn into resistance.
- Also note the cluster of 200-, 100-, and 50-day simple moving averages, which can also be seen as a resistance factor. }
EUR/USD 1H Chart 11/3
(click to enlarge)
Monitoring the reaction around 1.1120:
- As we can see in the 1H chart, despite some selling at 1.1120, the technical picture is still bullish.
- The choppiness around 1.11 and the bearish divergence are some early clues that this bullish technical picture is softening.
- If price fails to make a higher high in the 11/3 US session, and falls below 1.1080, then I would anticipate further slide to 1.0990-1.10.
- I would limit the bearish outlook to the 1.0940-1.0950 area.
- However, without a break below 1.1080, there is further upside risk. A break above 1.1125 continues this upside risk towards the 1.12 handle, .