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Corrective Pullback

EURUSD TECHS
  • RES 4: 1.2386 2.0% 10-dma envelope
  • RES 3: 1.2313 2.0% Upper Bollinger Band
  • RES 2: 1.2293/05 High Apr 23, 2018 / 1.764 of Nov 4 - 9 - 11 swing
  • RES 1: 1.2273 High Dec 17 and the bull trigger
  • PRICE: 1.2186 @ 05:46 GMT Dec 21
  • SUP 1: 1.2179 Intraday low
  • SUP 2: 1.2088 20-day EMA
  • SUP 3: 1.2059 Low Dec 10 and key support
  • SUP 4: 1.2040 Low Dec 2

EURUSD has started the week on a softer note as price pulls back from the recent high of 1.2273 on Dec 17. This is considered a correction with underlying bullish conditions still intact. The daily trend condition however is overbought suggesting scope for a deeper pullback. If correct, this signals scope for weakness towards 1.2088, the 20-day EMA initially. On the upside, 1.2273 is the bull trigger. A break resumes the uptrend.

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