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Challenges Bear Channel Resistance

EURUSD TECHS
  • RES 4: 1.16923 High Oct 28, 2021
  • RES 3: 1.1608 High Nov 9
  • RES 2: 1.1514 Low Nov 5
  • RES 1: 1.1432/53 Bear channel top from Jun 1 high / High Jan 13
  • PRICE: 1.1441 @ 06:06 GMT Jan 13
  • SUP 1: 1.1355 Low Jan 12
  • SUP 2: 1.1272/22 Low Jan 04 / Low Dec 15
  • SUP 3: 1.1186/85 Low Nov 24 / Low Jul 1, 2020 and the bear trigger
  • SUP 4: 1.1128 1.764 proj of the Jan 6 - Mar 31 - May 25 price swing

EURUSD traded higher yesterday above resistance at 1.1383/86, Nov 30 and Dec 31 highs. This marked the top of its recent range and the break suggests scope for a stronger short-term recovery. Attention is on the next important resistance that today intersects at 1.1432 - the top of a bear channel drawn from the Jun 1, 2021 high. This level has been probed and a clear break would strengthen a bullish case. Initial firm support is at 1.1272, Jan 4 low.

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