Recent price action in EURUSD appears to be a flag - a bullish continuation pattern that reinforces current bullish conditions. Last week's rally resulted in a bear channel breakout - price cleared the top of a channel drawn from the Dec 28 high and the break confirms a stronger reversal. Sights are on 1.0933 next, a Fibonacci retracement. Initial firm support lies at 1.0788, the 50-day EMA.
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EURUSD rallied into the Monday close, but stopped short of troubling resistance. Nonetheless, a bear cycle remains in play and price is trading closer to recent lows. The break on Apr 12 of key support at 1.0695, the Feb 14 low and bear trigger, confirmed a resumption of the downtrend. This signals scope for a move towards 1.0568 next, the Nov 2 2023 low, and 1.0543, the base of a bear channel drawn from the Dec 28 high. Initial firm resistance is seen at 1.0732, the 20-day EMA.