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Trading Above Former Trendline Resistance

EURO-DOLLAR TECHS
  • RES 4: 1.2011 High Sep 1 and major resistance
  • RES 3: 1.1917 High Sep 10
  • RES 2: 1.1872 High Sep 21
  • RES 1: 1.1808 High Oct 6
  • PRICE: 1.1786 @ 16:27 BST Oct 6
  • SUP 1: 1.1685 Low Sep 30 and key near-term support
  • SUP 2: 1.1612/1581 Low Sep 25 and the bear trigger / Low Jul 24
  • SUP 3: 1.1534 100-dma
  • SUP 4: 1.1486 38.2% retracement of the Mar - Sep rally

Monday's key technical development in EURUSD was a break of resistance at 1.1770/73, Oct 1 high and a trendline resistance drawn off the Sep 1 high. The move higher strengthens the near term outlook and signals scope for a climb above 1.1800 towards 1.1872 next, Sep 21 high. Note however that there is a clear lack of bullish impulsive activity following the break, and this is a concern for bulls. Initial support to watch lies at 1.1685, Sep 30 low.

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