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OUTLOOK: Price Signal Summary - EURUSD Bear Threat Remains Present

OUTLOOK
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  • In FX, EURUSD remains in a bear cycle. The pair traded lower Monday and is trading at its recent lows. Support at 1.1002, the Sep 11 low, has been breached. This level marked the midpoint of a double top reversal pattern on the daily chart and the formation highlights a stronger reversal. Sights are on 1.0881, 76.4% of the Aug 1 - Sep 25 bull leg and the next important support. Initial firm resistance is at 1.1021, the 20-day EMA.
  • The short-term trend condition in GBPUSD remains bearish and the pair is trading just ahead of its recent lows. Price action remains below the 20-day EMA and attention is on the next important support at 1.3002, the Sep 11 low. A clear break of this level would expose 1.2959, 61.8% of the Aug 8 - Sep 25 bull leg. Initial resistance to watch is 1.3159, the 20-day EMA. A clear breach of this average would signal a reversal.
  • USDJPY bulls remain in the driver’s seat and the pair is holding on to its recent gains. The latest rally resulted in a break of the 50-day EMA, a bullish development that undermines a recent bearish theme and highlights a stronger reversal. Sights are on 150.76, the 50% retracement of the Jul 3 - Sep 16 bear leg. Initial firm support to watch is 146.57, the 20-day EMA. Clearance of this level is required to signal a reversal.
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  • In FX, EURUSD remains in a bear cycle. The pair traded lower Monday and is trading at its recent lows. Support at 1.1002, the Sep 11 low, has been breached. This level marked the midpoint of a double top reversal pattern on the daily chart and the formation highlights a stronger reversal. Sights are on 1.0881, 76.4% of the Aug 1 - Sep 25 bull leg and the next important support. Initial firm resistance is at 1.1021, the 20-day EMA.
  • The short-term trend condition in GBPUSD remains bearish and the pair is trading just ahead of its recent lows. Price action remains below the 20-day EMA and attention is on the next important support at 1.3002, the Sep 11 low. A clear break of this level would expose 1.2959, 61.8% of the Aug 8 - Sep 25 bull leg. Initial resistance to watch is 1.3159, the 20-day EMA. A clear breach of this average would signal a reversal.
  • USDJPY bulls remain in the driver’s seat and the pair is holding on to its recent gains. The latest rally resulted in a break of the 50-day EMA, a bullish development that undermines a recent bearish theme and highlights a stronger reversal. Sights are on 150.76, the 50% retracement of the Jul 3 - Sep 16 bear leg. Initial firm support to watch is 146.57, the 20-day EMA. Clearance of this level is required to signal a reversal.