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Bull Flag Formation

EURUSD TECHS
  • RES 4: 1.0862 50.0% retracement of the Jul 18 - Oct 3 bear leg
  • RES 3: 1.0809 High Sep 4
  • RES 2: 1.0764 38.2% retracement of the Jul 18 - Oct 3 bear leg
  • RES 1: 1.0756 High Nov 6
  • PRICE: 1.0696 @ 16:31 GMT Nov 13
  • SUP 1: 1.0660 50- day EMA
  • SUP 2: 1.0638 20-day EMA
  • SUP 3: 1.0517/0496 Low Nov 1/ 13
  • SUP 4: 1.0448 Low Oct 03 and the bear trigger

A bullish theme in EURUSD remains intact and last week’s shallow pullback appears to be a correction and a bull flag formation - a bullish continuation pattern. A resumption of gains would expose 1.0764, a Fibonacci retracement, and a break of this level would open 1.0809, the Sep 4 high. Firm support is at 1.0517, the Nov 1 low, a break would be bearish. Initial firm support is 1.0638, the 20-day EMA.

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