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Pennant Formation

EURUSD TECHS
  • RES 4: 1.1313 High Feb 24 2022
  • RES 3: 1.1276 High Jul 18 and the bull trigger
  • RES 2: 1.1150/1229 High Jul 27 / 20
  • RES 1: 1.1042 High Aug 4
  • PRICE: 1.0984 @ 05:39 BST Aug 10
  • SUP 1: 1.0912 Low Aug 3 and the near-term bear trigger
  • SUP 2: 1.0867 Low Jul 7
  • SUP 3: 1.0834 Low Jul 6 and a key support
  • SUP 4: 1.0804 Low Jun 15

The trend outlook in EURUSD remains bearish. The recent pause appears to be a pennant - a continuation pattern that if correct, reinforces the bearish condition. The recent break of trendline support drawn from the May 31 low and a breach of the 50-day EMA, strengthens a bearish theme and opens the 1.0867, the Jul 7 low, ahead of key support 1.0834, the Jul 6 low. Initial resistance is seen at 1.1042, the Aug 4 high.

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