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Price Signal Summary - EURUSD Key Resistance Has Been Cleared

OUTLOOK
  • In FX, EURUSD traded sharply higher yesterday and continues to appreciate. This week’s rally has resulted in a move above 1.1012, the Jun 22 high and 1.1095, the Apr 26 high and key resistance. The move above 1.1095 confirms a resumption of the M/T uptrend. MA studies are in bull-mode position reinforcing current trend conditions. The focus is on 1.1185 next, the Mar 31 2022 high. On the downside, initial firm support lies at 1.1012.
  • GBPUSD bulls remain in the driver’s seat. This week’s clearance of resistance at 1.2848, the Jun 16 high, confirms a resumption of the medium-term uptrend and maintains the bullish price sequence of higher highs and higher lows. Note that moving average studies are in a bull-mode position. The focus is on 1.3131, the 1.00 projection of the May 25 - Jun 16 - Jun 29 price swing. Initial firm support lies at 1.2848, the Jun 16 high.
  • USDJPY cemented a bearish tone Wednesday, trading lower and extending the bear cycle that started Jun 30. The recent sell-off has resulted in a break of both the 20- and 50-day EMAs and price is again inside the bull channel drawn from the Jan 16 low. The move signals scope for an extension towards 137.36, the 50.0% retracement of the Mar 24 - Jun 30 bull leg, and 137.22, the 4.0% 10-dma envelope. Initial firm resistance is at 140.27, the 50-day EMA.

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