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Bear Flag Formation

EURUSD TECHS
  • RES 4: 1.0936 High Apr 21 and a key resistance
  • RES 3: 1.0852 High Apr 22
  • RES 2: 1.0670/0758 20-day EMA / Low Apr 14 - recent breakout level
  • RES 1: 1.0642 High May 5
  • PRICE: 1.0530 @ 16:15 BST May 10
  • SUP 1: 1.0472/54 Low Apr 28 and the bear trigger / Low Jan 1 2017
  • 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 is trading above its recent lows and continues to consolidate. The pause in the downtrend appears to be a bear flag formation - a bearish continuation pattern that highlights a shallow correction. Moving average studies are in a bear mode condition, highlighting current market sentiment. A resumption of weakness would open 1.0454, the Feb 22 2017 low. Watch resistance at 1.0670, the 20-day EMA.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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