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Faces Resistance Above The 50-Day EMA

EURUSD TECHS
  • RES 4: 1.0862 50.0% retracement of the Jul 18 - Oct 3 bear leg
  • RES 3: 1.0809 High Sep 4
  • RES 2: 1.0764 38.2% retracement of the Jul 18 - Oct 3 bear leg
  • RES 1: 1.0694/0737 High Oct 24 / High Sep 20
  • PRICE: 1.0603 @ 05:47 BST Oct 25
  • SUP 1: 1.0591 20-day EMA
  • SUP 2: 1.0496/0448 Low Oct 13 / 03 and the bear trigger
  • SUP 3: 1.0406 50.0% retracement of the Sep ‘22 - Jul ‘23 bull leg
  • SUP 4: 1.0365 2.0% 10-dma envelope

Despite breaching both the 20- and 50-day EMAs, EURUSD corrected lower into the Tuesday close, defying any bullish signals that emanated from the week’s early strength. A resumption of gains would strengthen the bull cycle and signal scope for a stronger correction. This would open 1.0764, a Fibonacci retracement. Support to watch lies at 1.0591, the 20-day EMA. A clear break of it would be bearish and expose 1.0496, the Oct 13 low.

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