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OUTLOOK: Price Signal Summary - EURUSD Resistance To Watch Is The 20-Day EMA

OUTLOOK
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  • In FX, a downtrend in EURUSD traded higher Wednesday, marking an extension of the recovery from last week’s low. The Nov 22 price pattern - a hammer candle - highlights a possible short-term base and if correct, the start of a corrective cycle. The trend is oversold and a continued recovery would allow this condition to unwind. Firm resistance to watch is 1.0618, the 20-day EMA. For bears, a move through 1.0335, the Nov 22 low, would resume the downtrend.
  • Gains yesterday in GBPUSD highlight the possible start of a corrective cycle. A move higher is allowing an oversold trend condition to unwind. Initial firm resistance to monitor is 1.2734, the 20-day EMA. The medium-term trend condition remains bearish, with moving average studies in a bear-mode set-up. A resumption of the trend would open 1.2446, the May 9 low. The bear trigger is 1.2487, the Nov 22 low.
  • This week’s move lower in USDJPY marks an extension of the current corrective cycle. The pair has traded through both the 20- and 50-day EMAs. A clear break of the 50-day average would signal scope for a deeper retracement, towards 150.19 next, the 38.2% retracement of the Sep 16 - Nov 15. A reversal higher would refocus attention on the bull trigger at 156.75, the Nov 15 high. Clearance of this level would confirm a resumption of the uptrend.
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  • In FX, a downtrend in EURUSD traded higher Wednesday, marking an extension of the recovery from last week’s low. The Nov 22 price pattern - a hammer candle - highlights a possible short-term base and if correct, the start of a corrective cycle. The trend is oversold and a continued recovery would allow this condition to unwind. Firm resistance to watch is 1.0618, the 20-day EMA. For bears, a move through 1.0335, the Nov 22 low, would resume the downtrend.
  • Gains yesterday in GBPUSD highlight the possible start of a corrective cycle. A move higher is allowing an oversold trend condition to unwind. Initial firm resistance to monitor is 1.2734, the 20-day EMA. The medium-term trend condition remains bearish, with moving average studies in a bear-mode set-up. A resumption of the trend would open 1.2446, the May 9 low. The bear trigger is 1.2487, the Nov 22 low.
  • This week’s move lower in USDJPY marks an extension of the current corrective cycle. The pair has traded through both the 20- and 50-day EMAs. A clear break of the 50-day average would signal scope for a deeper retracement, towards 150.19 next, the 38.2% retracement of the Sep 16 - Nov 15. A reversal higher would refocus attention on the bull trigger at 156.75, the Nov 15 high. Clearance of this level would confirm a resumption of the uptrend.