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Corrective Bounce

EURUSD TECHS
  • RES 4: 1.0789 50-day EMA
  • RES 3: 1.0737 High Sep 20
  • RES 2: 1.0685 20-day EMA
  • RES 1: 1.0574 High Sep 27
  • PRICE: 1.0565 @ 15:55 BST Sep 28
  • SUP 1: 1.0484 Low Jan 6
  • SUP 2: 1.0421 2.0% 10-dma envelope
  • SUP 3: 1.0406 50.0% retracement of the Sep ‘22 - Jul ‘23 bull leg
  • SUP 4: 1.0291 Low Nov 30 2022

Markets underwent a corrective recovery on Thursday, seeing spot bid up toward the Wednesday highs, but - ultimately - doing little to alter the medium-term direction. The trend condition remains bearish and the pair traded to a fresh cycle low on Wednesday, extending the current bearish run. The move lower maintains the bearish price sequence of lower lows and lower highs and moving average studies are in a bear mode position. Sights are on 1.0484 next, the Jan 6 low. Initial firm resistance is at 1.0685, the 20-day EMA. A break would signal the start of a possible correction.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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