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Price Signal Summary - EURUSD Recovery Extends

OUTLOOK
  • In FX,EURUSD traded higher again Tuesday and is firmer today. The pair has moved above resistance at 1.0760, the Mar 15 high. The clear break of this level strengthens the current bull theme and signals scope for gains towards 1.0803 next, the Feb 14 high and 1.0836, 61.8% of the Feb 2 - Mar 15 bear leg. On the downside, key short-term support is unchanged at 1.0516, the Mar 15 low, where a break is required to reinstate the recent bearish theme. Initial firm support is at 1.0657 50-day EMA.
  • GBPUSD on Monday cleared resistance at 1.2204, the Mar 14 high. This has strengthened the case for bulls and note too that resistance at 1.2269 has been pierced, the Feb 14 high. The next resistance to watch is 1.2296, 76.4% of the Jan 23 - Mar 8 bear leg. Clearance of this level would open 1.2448, the Jan 23 high. On the downside, key short-term support is at 1.2011, the Mar 15 low. Initial support is at 1.2161, the Mar 20 low.
  • The current bear cycle in USDJPY remains intact. Price traded lower Monday, reinforcing current conditions. 131.31, 61.8% retracement of the Jan 16 - Mar 8 rally, has been cleared. The breach strengthens bearish conditions and sets the scene for a move towards 129.75, the 76.4% retracement. Firm resistance is seen at the 20-day EMA. The average intersects at 133.94 where a break is required to ease bearish pressure. For now, gains are considered corrective.

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