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Bearish Risk Still Present, Trades Below Key Support

EURUSD TECHS
  • RES 4: 1.1821 High Sep 16
  • RES 3: 1.17155 / High Sep 22
  • RES 2: 1.1681 Bear channel top drawn from the Jun 1 high
  • RES 1: 1.1617/92 High Nov 4 / High Oct 28
  • PRICE: 1.1525 @ 12:35 GMT Nov 5
  • SUP 1: 1.1516 Intraday low
  • SUP 2: 1.1493 50.0% retracement of the Mar '20 - Jan '21 bull phase
  • SUP 3: 1.1469 1.236 proj of the Jan 6 - Mar 31 - May 25 price swing
  • SUP 4: 1.1341 Bear channel base drawn from the Jun 1 high

EURUSD is trading lower and has breached key support at 1.1524, Oct 12 low. The print below this support confirms a resumption of the underlying downtrend. Furthermore, it reinforces the bearish engulfing reversal candle from last Friday and maintains the downward price sequence within its bear channel. The focus is on 1.1493 next, a Fibonacci retracement level. 1.1617, Nov 4 high marks initial resistance.

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