Corrective Cycle Extends

• RES 4: 1.0051 High Sep 20
• RES 3: 1.0025 Bear channel top drawn from the Feb 10 high
• RES 2: 0.9907 High Sep 22
• RES 1: 0.9871 20-day EMA
• PRICE: 0.9805 @ 05:54 BST Sep 30
• SUP 1: 0.9636/9536 Low Sep 29 / 28
• SUP 2: 0.9501 1.382 projection of the Aug 10 - Sep 6 - 12 price swing
• SUP 3: 0.9486 Bear channel base drawn from the Feb 10 high
• SUP 4: 0.9442 1.50 projection of the Aug 10 - Sep 6 - 12 price swing

EURUSD short-term gains are considered corrective. The move higher yesterday and a higher print today, does suggest scope for a continuation of the recovery and an extension of the correction. Note too that the bounce from Wednesday’s low means the channel base, at 0.9486 today, has provided support. The 20-day EMA, at 0.9871 represents the next resistance. On the downside a resumption of weakness would open 0.9536/9486.