May 23, 2024 18:12 GMT
Equity Sell-Off Sees EURUSD Open Key Near-Term Support
FOREX
- The sharp sell-off in equities extends with some more large sell programs going through (close to the largest in the past month), driving a further shift higher in the USD index.
- Of note, EURUSD as dropped to 1.0809, through brief lows seen around earlier European data, and further through support at 1.0814 (former channel top drawn from Dec 28 high).
- A firmer push lower here could open a key near-term support at 1.0788 (50-day EMA) as it goes against a recent bullish trend.
- Unusually, CAD still sits bottom of the G10 FX pack despite the broader USD strength. USDCAD at 1.3735 has taken sizeable inroads towards next resistance at 1.3785 (Apr 30 high).
EURUSD starts to see support at the 50-day EMA (pink) come into the mixSource: Bloomberg
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