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Downside Range Extends on Break of 1.1738

EURO-DOLLAR TECHS
  • RES 4: 1.2102 76.4% retracement of the 2018 - 2020 downtrend
  • RES 3: 1.2011 High Sep 1 and the bull trigger
  • RES 2: 1.1929 High Sep 2
  • RES 1: 1.1917 High Sep 10 and a key resistance
  • PRICE: 1.1739 @ 16:40 BST Sep 21
  • SUP 1: 1.1732 Low Sep 21
  • SUP 2: 1.1720 50-day EMA
  • SUP 3: 1.1687 23.6% retracement of the Mar - Sep rally
  • SUP 4: 1.1639 Low Jul 27

EURUSD took a turn for the worse Monday, with weak global equity markets sapping risk appetite and driving the dollar higher. This prompted the pair to slip through key S/T support at 1.1738, Sep 17 low. This reinforces the bearish signals that initially appeared last week. A break of trendline support drawn off the May 14 low and what appears to be a head and shoulders reversal on the daily chart highlight downside risk. A break of resistance at 1.1917 would instead reinstate a bullish focus.

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