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Head And Shoulders Reversal

EURO-DOLLAR TECHS
  • RES 4: 1.2011 High Sep 1 and the bull trigger
  • RES 3: 1.1929 High Sep 2
  • RES 2: 1.1917 High Sep 10
  • RES 1: 1.2253 Former bull channel support
  • PRICE: 1.1786 @ 10:30 BST Sep 17
  • SUP 1: 1.1738 Intraday low
  • SUP 2: 1.1709 50-day EMA
  • SUP 3: 1.1687 23.6% retracement of the Mar - Sep rally
  • SUP 4: 1.1639 Low Jul 27

EURUSD is likely to remain under pressure despite the bounce off earlier lows. The pair has cleared trendline support drawn off the May 14 low. The break lower signals scope for an extension of the pullback that has unfolded since failing above 1.2000 on Sep 1. Furthermore the break lower highlights a head and shoulders reversal on the daily chart. The focus is on 1.1709, the 50-day EMA. Resistance is at 1.2253, former bull channel support.

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