Bearish Engulfing Candle *RES.....>

EURO-DOLLAR TECHS: Bearish Engulfing Candle

*RES 4: 1.1082 2.0% 10-dma envelope

*RES 3: 1.1039 High Apr 1

*RES 2: 1.1034 200-dma

*RES 1: 1.1018 High May 1 and intraday bull trigger

*PRICE: 1.0902 @ 05:40 BST May 5

*SUP 1: 1.0888 High Apr 28

*SUP 2: 1.0799 Low Apr 27 and key near-term support

*SUP 3: 1.0727 Apr 24 low and bear trigger

*SUP 4: 1.0723 Low Mar 24

EURUSD has started the week on a weaker note. Yesterday's price action in

Japanese candle terms is a bearish engulfing formation and highlights a

potential reversal threat. An extension lower through support at 1.0888 would

expose 1.0799, Apr 27 low initially. Last week, the pair cleared 1.0991, Apr 15

high, as well as the 100-dma. While this is a positive development, a break of

1.1018, May 1 high is needed to signal a bullish resumption.