EURUSD – rejection under key barriers keeps the downside vulnerable

EURUSD hit one-month high (1.0528) in early Monday trading, in immediate reaction to German election results, but fresh gains were quickly reversed, mainly due to the lack of bigger election surprises.

Initial signs of recovery stall under significant barriers at 1.0533/73 zone (former top of Jan 27 / daily cloud top / 100DMA / Fibo 38.2% of 1.1214/1.0177) would materialize if bulls repeatedly fail to clear this resistance zone and the price drops below 1.0400 pivot (Feb 19 trough / 55DMA).

Conflicting daily indicators lack clearer direction signal, with little support from data showing that bloc’s inflation remains elevated, though near-term bias is expected to remain bullish while the price stays above rising 10DMA (1.0448).

Expect stronger signals on violation of either breakpoint (1.0400 at the downside and 1.0573 at the upside).

Res: 1.0506; 1.0528; 1.0547; 1.0573
Sup: 1.0448; 1.0422; 1.0400; 1.0372