April 18, 2024 09:55 GMT
Price Signal Summary - Gains In EURUSD Considered Corrective
OUTLOOK
- In FX, the current downtrend in EURUSD remains intact and yesterday’s gains are considered corrective . The recent break of key support at 1.0695, the Feb 14 low and bear trigger, confirmed a resumption of the bear cycle. This signals scope for a move towards 1.0568 next, the Nov 2 2023 low, and 1.0552, the base of a bear channel drawn from the Dec 28 high. Initial firm resistance is seen at 1.0760, the 20-day EMA.
- A bearish theme in GBPUSD remains intact and the pair is trading closer to its recent lows. The recent breach of 1.2519, Feb 5 low, strengthens a bearish theme and signals a stronger reversal. Moving average studies are in a bear-mode set-up and this highlights a clear short-term downtrend. Scope is seen for an extension towards 1.2364, 61.8% of the Oct 4 - Mar 8 bull leg. On the upside, key resistance has been defined at 1.2709, the Apr 10 high. Initial resistance is at 1.2540, Apr 2 / 1 low.
- USDJPY bulls remain in the driver’s seat and the pair is trading just below its recent cycle high. The break higher last week confirmed a resumption of the primary uptrend and maintains the bullish price sequence of higher highs and higher lows. The trend is overbought, however, this is not - for now - a concern for bulls. Moving average studies are in a bull mode position too. Sights are on the 155.00 handle next. Support lies at 152.33, 20-day EMA.
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