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Price Signal Summary - USD Bulls Remain In The Driver's Seat

OUTLOOK
  • In FX, EURUSD extended losses Tuesday to clear the late August lows and hit the lowest levels since early June. The breach of the base of the bull channel at 1.0786, drawn from the Mar 15 low, reinforces the current bearish condition and opens 1.0668 next, the Jun 7 low. On the upside, key short-term resistance has been defined at 1.0945, the Aug 30 high. Clearance of this level is required to highlight a short-term reversal.
  • GBPUSD remains below key short-term resistance at 1.2746, the Aug 30 high. A break of this level is required to signal scope for a stronger short-term recovery. For now, the trend outlook is bearish and Tuesday’s move lower has reinforced this condition. Support at 1.2548, the Aug 25 low, has been breached. This confirms a resumption of the trend and opens 1.2480, the 1.50 projection of the Jul 14 - 24 - 27 price swing.
  • The USDJPY trend condition remains bullish and the pair traded higher Tuesday. Price cleared resistance at 147.37, the Aug 29 high and the bull trigger. This confirms a resumption of the uptrend and opens 148.40 next, the Nov 4 2022 high. On the downside, last Friday’s low of 144.45 represents the key short-term support.

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