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Corrective Bounce

  • RES 4: 1.0268 High Aug 15
  • RES 3: 1.0166 High Aug 18 and Channel top from the Feb 10 high
  • RES 2: 1.0090 High Aug 26 and key near-term resistance
  • RES 1: 1.0029 20-day EMA
  • PRICE: 0.9954 @ 16:46 BST Sep 8
  • SUP 1: 0.9864 Low Sep 6
  • SUP 2: 0.9800 Round number support
  • SUP 3: 0.9785 2.00 projection of the Jun 9 - 15 - 27 price swing
  • SUP 4: 0.9628 Channel base drawn from the Feb 10 high

EURUSD short-term gains are considered corrective, confirmed by the dip back below 1.00 ahead of the Thursday close. The pair remains in a downtrend and this week’s low print reinforces bearish conditions. The move lower on Tuesday, confirmed a resumption of the downtrend as the pair heads south inside its bear channel, drawn from the Feb 10 high. A bearish price sequence of lower lows and lower highs remains intact and the focus is on 0.9800 next. Initial resistance is seen at 1.0029, the 20-day EMA.

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