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Triangle Formation

  • RES 4: 1.1544 Bear channel top from Jun 1 high
  • RES 3: 1.1514 Low Nov 5
  • RES 2: 1.1442 50-day EMA
  • RES 1: 1.1383 High Nov 30
  • PRICE: 1.1279 @ 05:58 GMT Dec 14
  • SUP 1: 1.1228 Low Dec 07
  • SUP 2: 1.1186/85 Low Nov 24 / Low Jul 1, 2020
  • SUP 3: 1.1128 1.764 proj of the Jan 6 - Mar 31 - May 25 price swing
  • SUP 4: 1.1040 76.4% retracement of the Mar ‘20 - Jan ‘21 uptrend

EURUSD continues to consolidate and remains below resistance at 1.1383, Nov 30 high. A break of this level would signal potential for a stronger S/T recovery that would open 1.1442, the 50-day EMA. The recent consolidation appears to be a triangle formation. This is a continuation pattern and reinforces the current bear trend. The bear trigger is 1.1186/85. Clearance of this support would resume the trend and open 1.1128, a Fibonacci projection.

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