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Bear Flag Breakout

EURUSD TECHS
  • RES 4: 1.0852 High Apr 22
  • RES 3: 1.0758 Low Apr 14 and a recent breakout level
  • RES 2: 1.0642/43 High May 5 / 20-day EMA
  • RES 1: 1.0529 Intraday high
  • PRICE: 1.0434 @ 10:06 BST May 12
  • SUP 1: 1.0423 Intraday low
  • SUP 2: 1.0390 Low Jan 4 2017
  • SUP 3: 1.0341 Low Jan 3 2017 and a key support
  • SUP 4: 1.0333 1.236 proj of the Feb 10 - Mar 7 - 31 price swing

EURUSD has traded lower this morning and cleared support at 1.0472. The break lower confirms a bear flag breakout and a resumption of the primary downtrend. This also maintains the bearish price sequence of lower lows and lower highs. Moving average studies remain in a bear mode set-up, highlighting current market sentiment. The focus is on 1.0390 next, the Jan 4 2017 low. Key resistance has been defined at 1.0642, the May 5 high.

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