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Fades After Entering Overbought Territory

EURUSD TECHS
  • RES 4: 1.1081 76.4% retracement of the Jul 18 - Oct 3 downleg
  • RES 3: 1.1065 High Aug 10 and a key resistance
  • RES 2: 1.1005/27 High Aug 11 / 2.0% 10-dma envelope
  • RES 1: 1.0965 High Nov 21
  • PRICE: 1.0864 @ 16:04 GMT Nov 22
  • SUP 1: 1.0825/0756 Low Nov 17 / High Nov 5, recent breakout level
  • SUP 2: 1.0711 50-day EMA
  • SUP 3: 1.0656 Low Nov 10 and key short-term support
  • SUP 4: 1.0568 Low Nov 2

A bullish theme in EURUSD remains intact and the focus is on 1.1005, Aug 11 high and 1.1065, the Aug 10 high and a key resistance. Moving average studies have crossed and are currently in a bull-mode position, highlighting positive market sentiment. Note that the 14-day RSI has spilled over 70, flagging a technically overbought condition in the pair, partially alleviated by today’s corrective pullback. A corrective pullback would unwind this condition. Initial support lies at 1.0825, Nov 17 low.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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