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Free AccessBounce Lacks Conviction *RES 3:...>
EURO-DOLLAR TECHS: Bounce Lacks Conviction
*RES 3: 1.0958 High Feb 10
*RES 2: 1.0926 High Feb 12 and key near-term resistance
*RES 1: 1.0889 High Feb 13
*PRICE: 1.0815 @ 09:38 GMT Feb 21
*SUP 1: 1.0732 1.0% 10-dma envelope
*SUP 2: 1.0777 1.764 projection of Jan 16 - Jan 29 decline from Feb 3 high
*SUP 3: 1.0628 3.0% Lower Bollinger Band
Friday's PMI-inspired bounce looks uninspirational and is unlikely to stir any
upside breakout just yet. The impulsive losing streak for the single currency is
still weighing heavy. Should new lows be printed today, that will mark the
longest sequence of daily lower lows for the pair since the EUR's adoption. This
is raising the bar further for bulls to arrest this decline, with the 1.0%
10-dma envelope remaining key support going forward. We continue to stress that
although the downtrend remains intact, the trend is steep and the risk of a
sharp reversal increases each day. Initial resistance is at 1.0889.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.