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Price Signal Summary - EURUSD Pullback Appears To Be A Bull Flag

OUTLOOK
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  • In FX, EURUSD remains below its recent high. The recent move lower appears to be a flag formation - a bullish continuation pattern that reinforces the uptrend. A bear channel breakout on May 15 - price cleared the top of a channel drawn from the Dec 28 high - confirmed a stronger reversal. Sights are on 1.0933 next, 61.8% of the Dec 28 - Apr 16 bear leg. Support to watch lies at 1.0791, the 50-day EMA.
  • The GBPUSD trend condition remains bullish and the pair is approaching last week’s high. The recent breach of 1.2634, the May 3 high, confirmed a resumption of the current bull cycle. 1.2754, 76.4% of the Mar 8 - Apr 22 bear leg, was pierced last Wednesday, a clear break would expose 1.2803, the Mar 21 high. Initial firm support to watch is 1.2602, the 50-day EMA.
  • USDJPY is holding on to last week’s gains. The pair has managed to breach resistance at 156.74, the May 14 high and 157.00, 61.8% of the Apr 29 - May 3 sell-off. A continuation higher would open 157.99, the May 1 high. For bears, a reversal lower would refocus attention on 154.03, the 50-day EMA, and 153.09, trendline support drawn from the Dec 28 low. Clearance of these two price points would strengthen a bearish threat.
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  • In FX, EURUSD remains below its recent high. The recent move lower appears to be a flag formation - a bullish continuation pattern that reinforces the uptrend. A bear channel breakout on May 15 - price cleared the top of a channel drawn from the Dec 28 high - confirmed a stronger reversal. Sights are on 1.0933 next, 61.8% of the Dec 28 - Apr 16 bear leg. Support to watch lies at 1.0791, the 50-day EMA.
  • The GBPUSD trend condition remains bullish and the pair is approaching last week’s high. The recent breach of 1.2634, the May 3 high, confirmed a resumption of the current bull cycle. 1.2754, 76.4% of the Mar 8 - Apr 22 bear leg, was pierced last Wednesday, a clear break would expose 1.2803, the Mar 21 high. Initial firm support to watch is 1.2602, the 50-day EMA.
  • USDJPY is holding on to last week’s gains. The pair has managed to breach resistance at 156.74, the May 14 high and 157.00, 61.8% of the Apr 29 - May 3 sell-off. A continuation higher would open 157.99, the May 1 high. For bears, a reversal lower would refocus attention on 154.03, the 50-day EMA, and 153.09, trendline support drawn from the Dec 28 low. Clearance of these two price points would strengthen a bearish threat.