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Bearish Corrective Cycle Still In Play

  • RES 4: 1.2353 High Apr 20, 2018
  • RES 3: 1.2349 High Jan 6
  • RES 2: 1.2230/85 High Jan 11 / 8
  • RES 1: 1.2190 High Jan 22
  • PRICE: 1.2183 @ 06:01 GMT Jan 25
  • SUP 1: 1.2054 Low Jan 18
  • SUP 2: 1.2011 High Sep 1 and a former breakout level
  • SUP 3: 1.1976 50.0% retracement of the Nov 4 - Jan 6 rally
  • SUP 4: 1.1897 2.0% 10-dma envelope

EURUSD is holding onto last week's gains and testing the 20-day EMA at 1.2165. Last week's recovery is seen as a pause in the current bearish cycle and further S/T weakness is likely with the pair still in a corrective phase. This follows the recent sell-off from 1.2349, Jan 6 high. A resumption of weakness would open 1.2011, Sep 1 high next and 1.1976, a Fibonacci retracement. Above the 20-day EMA, 1.2230 marks a firm resistance, Jan 11 high.

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