May 22, 2024 17:00 GMT
EURUSD TECHS: Bull Flag Formation
EURUSD TECHS
- RES 4: 1.0981 High Mar 8 and a key resistance
- RES 3: 1.0964 High Mar 13
- RES 2: 1.0933 61.8% retracement of the Dec 28 - Apr 16 bear leg
- RES 1: 1.0895 High May 16
- PRICE: 1.0839 @ 16:31 BST May 22
- SUP 1: 1.0817 Former channel top drawn from the Dec 28 high
- SUP 2: 1.0787 50-day EMA and a key near-term support
- SUP 3: 1.0724 Low May 3
- SUP 4: 1.0650 Low May 1
EURUSD is trading closer to last week’s highs and the current consolidation appears to be a flag - a bullish continuation pattern. The trend direction remains up following recent gains. Last week's rally resulted in a bear channel breakout - price cleared the top of a channel drawn from the Dec 28 high and the break confirms a stronger reversal. Sights are on 1.0933 next, a Fibonacci retracement. Initial firm support lies at 1.0787, the 50-day EMA.
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