Free Trial

Bullish Engulfing Reversal?

EURUSD TECHS
  • RES 4: 1.2190 High Jan 22 and a key resistance
  • RES 3: 1.2156 High Jan 29
  • RES 2: 1.2093 50-day EMA
  • RES 1: 1.2054 Low Jan 18
  • PRICE: 1.2039 @ 05:53 GMT Feb 8
  • SUP 1: 1.1952 Low Feb 5
  • SUP 2: 1.1945 23.6% retracement March - Jan rally
  • SUP 3: 1.1924 Low Nov 30
  • SUP 4: 1.1840 2.0% 10-dma envelope

EURUSD remains bearish following last week's move lower. This resulted in a break of 1.2000 and signals scope for weakness towards 1.1945 next, the 23.6% retracement of the rally between Mar - Jan. A break of this level would open 1.1924, Nov 30, 2020 low. Note, Friday's recovery is a warning to bears. A bullish engulfing candle pattern signals a possible reversal. We will continue to monitor this pattern. Initial resistance is at 1.2054, Jan 18 low.

To read the full story

Close

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.