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Profit-taking Takes Pair Off Highs

EURUSD TECHS
  • RES 4: 1.0769 High Sep 12
  • RES 3: 1.0732 50-day EMA
  • RES 2: 1.0674 High Sep 21
  • RES 1: 1.0640 High Oct 11
  • PRICE: 1.0537 @ 08:15 BST Oct 13
  • SUP 1: 1.0448 Low Oct 03 and the bear trigger
  • SUP 2: 1.0406 50.0% retracement of the Sep ‘22 - Jul ‘23 bull leg
  • SUP 3: 1.0335 2.0% 10-dma envelope
  • SUP 4: 1.0291 Low Nov 30 2022

EUR/USD finished higher for a sixth consecutive session on Wednesday, breaking north of the 20-day EMA in the process. As a result, the outlook is beginning to improve for the pair, however momentum measures and the medium-term trend direction remain lower for now. Recent cycle lows printed last week confirmed a resumption of the downtrend, opening 1.0406, a Fibonacci retracement. A close above the 20-day EMA is required to then open 1.0674 and levels last seen in late September.

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