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Corrective Pullback

EURUSD TECHS
  • RES 4: 1.0851 High Apr 25
  • RES 3: 1.0849 2.0% 10-dma envelope
  • RES 2: 1.0787 High May 30 and a key resistance
  • RES 1: 1.0735 High Dec 15 and the bull trigger
  • PRICE: 1.0566 @ 15:13 GMT Jan 3
  • SUP 1: 1.0525 1.0% 10-dma envelope
  • SUP 2: 1.0520 Low Jan 3
  • SUP 3: 1.0443 Low Dec 7 and a key short-term support
  • SUP 4: 1.0411 50-day EMA

EURUSD has traded sharply lower and in the process has breached support at the 20-day EMA, at 1.0587 as well as 1.0528, the Dec 13 low. This exposes key short-term support at 1.0443, the Dec 7 low. The move lower is considered corrective - for now - and the uptrend remains intact. The bull trigger has been defined at 1.0735, the Dec 15 high, where a break would confirm a resumption of the uptrend.

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