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Bears Pause For Breath

EURO-DOLLAR TECHS
  • RES 4: 1.1872 High Sep 21
  • RES 3: 1.1822 Trendline resistance drawn off the Sep 1 high
  • RES 2: 1.1772 20-day EMA
  • RES 1: 1.1713 50-day EMA
  • PRICE: 1.1655 @ 16:37 BST Sep 28
  • SUP 1: 1.1612/1581 Low Sep 25 / Low Jul 24
  • SUP 2: 1.1486 38.2% retracement of the Mar - Sep rally
  • SUP 3: 1.1480 100-dma
  • SUP 4: 1.1422 High Jun 10

EURUSD is consolidating, the outlook though remains bearish. Weakness last week resulted in a breach of the 50-day EMA 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 1.1713, the 50-day EMA.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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