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Trend Outlook Remains Bearish

EURUSD
  • RES 4: 1.0327 High Aug 12
  • RES 3: 1.0246 Channel top drawn from the Feb 10 high
  • RES 2: 1.0097/0115 Low Jul 27 / 20-day EMA
  • RES 1: 1.0090 High Aug 26
  • PRICE: 1.0016 @ 16:02 BST Aug 26
  • SUP 1: 0.9883 1.764 projection of the Jun 9 - 15 - 27 price swing
  • SUP 2: 0.9800 Round number support
  • SUP 3: 0.9785 2.00 projection of the Jun 9 - 15 - 27 price swing
  • SUP 4: 0.9708 Channel base drawn from the Feb 10 high

EURUSD rallied Friday to touch 1.0090 before fading into the close. The inability of the pair to build on intraday strength keeps the outlook bearish following the week’s move lower. Price action resulted in a breach of 0.9952, the Jul 14 low. The break confirmed an extension lower inside the bear channel and a resumption of the primary downtrend. The focus is on 0.9883 next, a Fibonacci projection. Further out, scope is seen for a move towards the channel base at 0.9708.

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