OUTLOOK: Price Signal Summary - Bearish Reversal Threat In Cable
Last updated at:Jun-05 10:13By: Taso Anastasiou
- In FX, the downtrend in EURUSD remains intact. Fresh trend lows last week reinforce bearish conditions and price is trading below the 20- and 50-day EMAs. 1.0653 has been breached, 76.4% of the Mar 15 - Apr 26 rally and this opens 1.0551, Mar 16 low. A firm resistance is seen at 1.0797, the 20-day EMA. Clearance of this average would ease recent bearish pressure.
- Key short-term resistance in GBPUSD has been defined at Friday’s high of 1.2545 and the latest pullback highlights a bearish threat. Note that, despite a brief test above it last week, the 61.8% retracement of the May 10 - 25 downleg at 1.2538 remains intact. A continuation lower would shift attention to 1.2308, the May 25 low and key support. Clearance of Friday’s high is required to reinstate the recent bull cycle.
- USDJPY bullish conditions remain intact. Recent highs resulted in a test of the top of a bull channel, drawn from the Jan 16 low which intersects at 141.01 today and represents a key resistance. A clear break of it would reinforce bullish conditions and open 141.61, the Nov 23 2022 high. For bears, a stronger reversal lower would highlight a potential top. Key support to watch is 138.20, the 20-day EMA.