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Bullish Pennant Formation

EURUSD TECHS
  • RES 4: 1.1081 76.4% retracement of the Jul 18 - Oct 3 downleg
  • RES 3: 1.1065 High Aug 10
  • RES 2: 1.1017 High Nov 29 and the bull trigger
  • RES 1: 1.1009 High Dec 14
  • PRICE: 1.0965 @ 15:05 GMT Dec 20
  • SUP 1: 1.0864/1.0804 20- and 50-day EMA values
  • SUP 2: 1.0724 Low Dec 8 and the bear trigger
  • SUP 3: 1.0693 Low Nov 14
  • SUP 4: 1.0665 61.8% retracement of the Oct 3 - Nov 29 rally

The recovery in EURUSD that started on Dec 8 is a bullish development and the latest consolidation appears to be a pennant - a bullish continuation signal. The rally suggests scope for a test of key short-term resistance at 1.1017, the Nov 29 high and a bull trigger. Moving average studies remain in a bull-mode position, highlighting an uptrend. Key support has been defined at 1.0724, the Dec 8 low. Initial support is at 1.0872, the 20-day EMA.

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