Free Trial

Price Signal Summary - EURUSD Bear Trend Remains Intact

OUTLOOK
  • In FX, EURUSD, remains in a clear downtrend and traded to a fresh trend low Tuesday, confirming a resumption of the trend. The move lower maintains the price sequence of lower lows and lower highs and note that moving average studies are in a bear mode position. The break lower signals scope for a move towards 1.0406 next, the 50.0% retracement of the Sep ‘22 - Jul ‘23 bull leg. Initial firm resistance is at 1.0630, the 20-day EMA. A break would signal the start of a correction.
  • GBPUSD bears remain in the driver’s seat and this week’s fresh cycle low reinforces bearish conditions. The extension lower maintains the price sequence of lower lows and lower highs and moving average studies are in a bear-mode position, reflecting current market sentiment. The focus is on 1.2028, the Mar 16 low. Initial firm resistance is seen at 1.2304, the 20-day EMA. A break of this average would highlight a possible short-term base.
  • The USDJPY trended higher into US hours Tuesday, hitting a new cycle best at Y150.16 before a sharp reversal tipped prices lower, raising speculation of BoJ intervention as prices fell to 147.43. The recovery from the intraday low yesterday, however, is bullish and - for now - the uptrend remains intact. A clear break of the 150.00 handle would reinforce bullish conditions. Yesterday’s low of 147.43 represents a key short-term support.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.