EURUSD remains below this week’s high. The weak close Monday is a potential bearish development that points to a possible top. In pattern terms, Monday is a shooting star candle - a reversal signal. An extension lower would expose key support at 1.0223, Nov 21 low. Clearance of this level would confirm a reversal and signal scope for a deeper pullback. A break of 1.0497, Nov 28 high, is required to resume recent bullish price action.
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USDCAD remains below the 20-day EMA and maintains a bearish tone as the reversal from 1.3977, Oct 13 high, extends. Support at 1.3503, the Oct 4 high, has been pierced. Note that the 50-day EMA intersects at 1.3462. Clearance of these two chart points (a key support zone) would signal scope for a deeper pullback. The broader trend direction is up and the pullback is considered corrective. Initial firm resistance is 1.3855, Oct 21 high.
Tsys remain weaker after the bell - near early session lows after some choppy first half trade. Tsys bounced after latest Employment Cost Index came out in-line w/ estimates at 1.2% (1.3% prior) but with a relatively larger moderation in private sector wages within, PCE in-line as well at +0.4%. (down-revision to core PCE weaker than expected but was all rounding).
AUDUSD is trading closer to this week’s highs. The outlook is bullish following the reversal from 0.6170, the Oct 13 low. The focus is on 6547, Oct 4 high and the 50-day EMA, a key short-term hurdle that intersects at 0.6550. A break of this EMA would strengthen current bullish conditions. Note that gains are still considered corrective and the broader trend direction remains down. Initial support to watch lies at 0.6401, the 20-day EMA.