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Gains Considered Corrective

EURUSD TECHS
  • RES 4: 1.0943 High Mar 21
  • RES 3: 1.0885 High Apr 09
  • RES 2: 1.0768 50-day EMA
  • RES 1: 1.0717/53 20-day EMA / High Apr 26
  • PRICE: 1.0705 @ 17:08 BST May 2
  • SUP 1: 1.0650/0601 Low May 1 / Low Apr 16
  • SUP 2: 1.0568 Low Nov 2 ‘23
  • SUP 3: 1.0522 Base of a bear channel drawn from the Dec 28 high
  • SUP 4: 1.0517 Low Nov 1 ‘23

EURUSD tested resistance at 1.0717 Thursday, marking the 20-day EMA. The latest move higher appears to be a correction and the trend direction remains down. A resumption of the trend would open 1.0568, the Nov 2 2023 low, and 1.0522, the base of a bear channel drawn from the Dec 28 high. For bulls, a clear break of the 20-day EMA would instead signal scope for a stronger recovery. The 50-day EMA is at 1.0768.

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