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Corrective Bounce

EURUSD TECHS
  • RES 4: 1.0198 High Sep 12 and a key resistance
  • RES 3: 1.0051 High Sep 20
  • RES 2: 0.9936/9999 Bear channel top from Feb 10 high / High Oct 4
  • RES 1: 0.9815 20-day EMA
  • PRICE: 0.9788 @ 19:49 BST Oct 13
  • SUP 1: 0.9633 Low Oct 13
  • SUP 2: 0.9536 Low Sep 28 and key support
  • SUP 3: 0.9501 1.382 projection of the Aug 10 - Sep 6 - 12 price swing
  • SUP 4: 0.9398 Bear channel base drawn from the Feb 10 high

EURUSD traded to a fresh weekly low Thursday, before recovering. Gains are considered corrective and the pair remains in bear mode. Last week’s reversal from 0.9999 marked a failure at the top of the channel drawn from the Feb 10 high and indications are that price is likely to extend lower. The focus is on 0.9536, the Sep 28 low. 0.9999 is a key resistance. Note that the channel top is at 0.9936 and this level also represents a key hurdle for bulls.

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