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Key Support Back Under Pressure

EURUSD TECHS
  • RES 4: 1.1920 38.2% of the May 25 - Aug 11 sell-off
  • RES 3: 1.1909 High Jul 30
  • RES 2: 1.1868 50-day EMA
  • RES 1: 1.1800/05 20-day EMA / High Aug 13
  • PRICE: 1.1768 @ 16:18 BST Aug 17
  • SUP 1: 1.1706 Low Aug 10
  • SUP 2: 1.1704 Low Mar 31 and a key support
  • SUP 3: 1.1695 38.2% retracement of the 2020 - 2021 Rally
  • SUP 4: 1.1603 Low Nov 4, 2020

The immediate resumption of broad dollar strength following the weak US retail sales data enhanced the vulnerability of the major support at 1.1704 - the 2021 lows printed in March. The additional 1.1706 print just last week has bolstered the significance of horizontal support ahead of the 1.17 mark. A break below would leave rates at the lowest levels since November 2020 and would open up 1.1603, Low Nov 4, 2020. Below here, the immediate post pandemic highs at 1.1495 would likely act as strong psychological and pivot support.

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