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Bearish Threat Still Present

EURO-DOLLAR TECHS
  • RES 4: 1.1996 High May 14, 2018
  • RES 3: 1.1978 1.236 proj of May 7 - Jun 10 rally from Jun 19 low
  • RES 2: 1.1966 Cycle high Aug 18
  • RES 1: 1.1901 High Aug 27
  • PRICE: 1.1827 @ 17:07 BST Aug 27
  • SUP 1: 1.1754 Low Aug 21
  • SUP 2: 1.1711 Low Aug 12 and the bear trigger
  • SUP 3: 1.1696 Low Aug 3 and a key support
  • SUP 4: 1.1639 Low Jul 27 May 14 low
EURUSD underwent an acute spell of volatility following Powell's speech, spiking higher to show above the 1.19 mark before completely reversing course to trade at pre-Fed levels. The near-term focus is still on a bearish threat that appeared following last week's price action. A bearish engulfing candle formation on Aug 19, signals a top in the trend. This set-up has been reinforced by a bearish divergence condition between price and momentum. The focus is on the key support at 1.1711, Aug 12 low and the reversal trigger.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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