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Gains Are Considered Corrective

EURUSD TECHS
  • RES 4: 1.0769 High Sep 12
  • RES 3: 1.0740 50-day EMA
  • RES 2: 1.0674 High Sep 21
  • RES 1: 1.0618 20-day EMA
  • PRICE: 1.0529 @ 15:54 BST Oct 5
  • SUP 1: 1.0448 Low Oct 03
  • SUP 2: 1.0406 50.0% retracement of the Sep ‘22 - Jul ‘23 bull leg
  • SUP 3: 1.0361 2.0% 10-dma envelope
  • SUP 4: 1.0291 Low Nov 30 2022

EURUSD remains in a downtrend and traded to a fresh trend low Tuesday, confirming a resumption of the trend. The move lower maintains the price sequence of lower lows and lower highs and note that moving average studies are in bear mode position. Attention is on 1.0406, a Fibonacci retracement. Initial firm resistance is at 1.0618, the 20-day EMA. A break would signal the start of a correction. Gains are considered corrective.

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