May 15, 2024 10:15 GMT
Price Signal Summary - EURUSD Tests Channel Resistance
OUTLOOK
- In FX, EURUSD traded higher yesterday and is holding on to its recent gains. A bullish short-term condition remains intact and price is trading above both the 20- and 50-day EMAs. This signals scope for a continuation near-term and attention is on the bear channel top at 1.0832 that has today been pierced. The channel is drawn from the Dec 28 high. A clear break would strengthen a bullish condition and open 1.0885, the Apr 9 high. First support lies at 1.0769, the 50-day EMA.
- GBPUSD continues to appreciate. Attention is on resistance at 1.2634, the May 3 high. A clear breach of this hurdle would reinstate the recent upleg and open 1.2667, 61.8% of the Mar 8 - Apr 22 bear leg. On the downside, support to watch is 1.2446, the May 9 low. Clearance of this level would reinstate a bearish threat and signal scope for an extension towards the bear trigger at 1.2300, the Apr 22 low. First support lies at 1.2510, yesterday’s low.
- USDJPY is trading closer to this week’s highs and the bull cycle that started May 3, remains in play. For now, gains are considered corrective and a bear threat is present following the recent intervention-triggered retracement. A clear resumption of weakness would expose key support at 152.13, a trendline drawn from the Dec 28 low. Clearance of this line would strengthen a bearish threat. Initial resistance to watch is 157.00, 61.8% of the Apr 29 - May 3 sell-off.
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