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50-Day EMA Gives Way

  • RES 4: 1.1076 High Apr 1, 2022
  • RES 3: 1.1054 1.236 proj of the Oct 13 -27 rally from the Jan 6 low
  • RES 2: 1.0940/1.1033 High Feb 3 / High Feb 2
  • RES 1: 1.0793 20-day EMA
  • PRICE: 1.0665 @ 16:18 GMT Feb 17
  • SUP 1: 1.0613 Low Feb 17
  • SUP 2: 1.0597 1.0% 10-dma envelope
  • SUP 3: 1.0484 Low Jan 6 and a key support
  • SUP 4: 1.0461 38.2% retracement of the Sep 28 - Feb 2 bull leg

The CPI-inspired intraday spike in EURUSD reversed into the Tuesday close and the pair printed another lower low Friday. The price action shows rallies are still prone to pullbacks on any move higher. Prices have now broken below the 50-day EMA at 1.0678, signalling that the current correction could have room to run lower. The clear break of the 50-day EMA strengthens the bearish cycle and exposes 1.0484, the Jan 6 low.

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