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Engulfing Candle Highlights Bullish Reversal

EURUSD TECHS
  • RES 4: 1.0851 High Apr 25
  • RES 3: 1.0836 2.0% 10-dma envelope
  • RES 2: 1.0787 High May 30 and a key resistance
  • RES 1: 1.0735 High Dec 15 / bull trigger
  • PRICE: 1.0679 @ 05:28 GMT Jan 9
  • SUP 1: 1.0585 20-day EMA
  • SUP 2: 1.0484/83 Low Jan 6 / 3.0% Lower Bollinger Band
  • SUP 3: 1.0436 50-day EMA
  • SUP 4: 1.0394 Low Dec 1

A strong recovery Friday in EURUSD, signals the end of the recent corrective pullback. The pair has found support ahead of the 50-day EMA, at 1.0436 and Friday’s price pattern is an engulfing candle, signalling the return of bullish market sentiment. A continuation higher would expose the bull trigger at 1.0735, the Dec 15 high. A break of this level would resume the uptrend. The first key support to watch lies at 1.0484, Friday’s low.

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