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Price Signal Summary - EURUSD Pullback Appears To Be A Correction

OUTLOOK
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  • In FX, EURUSD remains closer to this week’s highs despite the latest pullback, which appears to be a correction. Recent gains once again confirm an extension of the bull leg that started Apr 16. The move higher also highlights a clear bear channel breakout - price is through the top at 1.0826. The channel is drawn from the Dec 28 high. Sights are on 1.0933 next, 61.8% of the Dec 28 - Apr 16 bear leg. Initial firm support lies at 1.0777, the 50-day EMA.
  • GBPUSD is trading closer to its recent highs. This week’s gains have resulted in a break of resistance at 1.2634, the May 3 high. The breach confirms a resumption of the current bull cycle and opens 1.2709 next, the Apr 9 high, ahead of 1.2754, 76.4% of the Mar 8 - Apr 22 bear leg. On the downside, initial firm support lies at 1.2572, the 50-day EMA.
  • USDJPY has recovered from Thursday’s low. The reversal off Tuesday's high continues to signal the end of the corrective recovery between May 3 - 14, and a possible resumption of a short-term bearish cycle. Attention is on 153.36, the 50-day EMA, and 152.37, trendline support drawn from the Dec 28 low. Clearance of these two price points would strengthen a bearish threat. Initial firm resistance to watch is 156.74, May 14 high. A break would be a positive development for bulls.
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  • In FX, EURUSD remains closer to this week’s highs despite the latest pullback, which appears to be a correction. Recent gains once again confirm an extension of the bull leg that started Apr 16. The move higher also highlights a clear bear channel breakout - price is through the top at 1.0826. The channel is drawn from the Dec 28 high. Sights are on 1.0933 next, 61.8% of the Dec 28 - Apr 16 bear leg. Initial firm support lies at 1.0777, the 50-day EMA.
  • GBPUSD is trading closer to its recent highs. This week’s gains have resulted in a break of resistance at 1.2634, the May 3 high. The breach confirms a resumption of the current bull cycle and opens 1.2709 next, the Apr 9 high, ahead of 1.2754, 76.4% of the Mar 8 - Apr 22 bear leg. On the downside, initial firm support lies at 1.2572, the 50-day EMA.
  • USDJPY has recovered from Thursday’s low. The reversal off Tuesday's high continues to signal the end of the corrective recovery between May 3 - 14, and a possible resumption of a short-term bearish cycle. Attention is on 153.36, the 50-day EMA, and 152.37, trendline support drawn from the Dec 28 low. Clearance of these two price points would strengthen a bearish threat. Initial firm resistance to watch is 156.74, May 14 high. A break would be a positive development for bulls.