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Bears Pause For Breath

EURO-DOLLAR TECHS
  • RES 4: 1.1917 High Sep 10 and a key resistance
  • RES 3: 1.1872 High Sep 21
  • RES 2: 1.1832 Trendline resistance drawn off the Sep 1 high
  • RES 1: 1.1738 Low Sep 17
  • PRICE: 1.1665 @ 05:29 BST Sep 25
  • SUP 1: 1.1627/1581 Low Sep 24 / Low Jul 24
  • SUP 2: 1.1486 38.2% retracement of the Mar - Sep rally
  • SUP 3: 1.1472 100 dma
  • SUP 4: 1.1422 High Jun 10

EURUSD bears have paused for breath. The outlook remains bearish though. This week has seen the 50-day EMA cleared reinforcing a bearish threat. The Sep 1 sell-off also saw the pair slip through 1.1738, Sep 17 low confirming recent bearish signals. A trendline break drawn off the May 14 low and a head and shoulders reversal pattern both highlighted downside risk. The focus is on 1.1581 next. Initial firm resistance is at 1.1872.

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