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Focus Is On Trendline Support

EURUSD TECHS
  • RES 4: 1.2419 2.0% 10-dma envelope
  • RES 3: 1.2314 2.0% Upper Bollinger Band
  • RES 2: 1.2293/05 High Apr 23, 2018 / 1.764 of Nov 4 - 9 - 11 swing
  • RES 1: 1.2273 High Dec 17 and the bull trigger
  • PRICE: 1.2194 @ 16:06 GMT Dec 23
  • SUP 1: 1.2133/30 Trendline drawn off the Nov 4 low / Low Dec 21
  • SUP 2: 1.2109 20-day EMA
  • SUP 3: 1.2059 Low Dec 10 and key support
  • SUP 4: 1.2040 Low Dec 2

EURUSD retains the volatile nature of pre-Christmas trade so far. Underlying bullish conditions remain intact though. However, the daily trend condition is overbought and this does suggest the pair is due a correction. If correct, this would signal scope for weakness towards 1.2109, the 20-day EMA that lies just below a trendline support at 1.2133, drawn off the Nov 4 low. A break would be bearish. 1.2273 is the bull trigger.

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

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