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Corrective Cycle Still In Play

EURUSD TECHS
  • RES 4: 1.0051 High Sep 20
  • RES 3: 1.0007 Bear channel top drawn from the Feb 10 high
  • RES 2: 0.9907 High Sep 22
  • RES 1: 0.9861 20-day EMA
  • PRICE: 0.9837 @ 06:09 BST Oct 4
  • SUP 1: 0.9735 Low Sep 30
  • SUP 2: 0.9636/9536 Low Sep 29 / 28
  • SUP 3: 0.9501 1.382 projection of the Aug 10 - Sep 6 - 12 price swing
  • SUP 4: 0.9469 Bear channel base drawn from the Feb 10 high

EURUSD maintains a firmer short-term tone and is holding on to the bulk of its recent gains - a short-term correction. This suggests scope for a continuation higher near-term. Note too that the bounce from last Wednesday’s low means the channel base, at 0.9469, has provided support. The 20-day EMA, at 0.9861 is first resistance. The channel top intersects at 1.0007. A resumption of weakness would open 0.9536/9477.

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