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Bearish Risk Still Present

EURUSD TECHS
  • 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: 1.2171 20-day EMA
  • PRICE: 1.2106 @ 16:40 GMT Jan 20
  • 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: 1.1951 2.0% 10-dma envelope

Having traded poorly for a number of sessions now, EURUSD bounced smartly Tuesday before giving back the gains into the Wednesday close. The climb does not alter the near-term outlook and a bearish corrective theme remains in place following the recent sell-off from 1.2349, Jan 6 high. The leg lower is allowing a recent overbought condition to unwind. A resumption of weakness would open 1.2011, Sep 1 high next and 1.1976, a Fibonacci retracement. 1.2230 marks a firm resistance.

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