EUR Trading Outlook
TECHNICALS: The weekly trendline near .9870 has been broken and this level now becomes the first point of resistance. Short term charts are trying to base near .9800 (see chart) but the bears still have the stronger case.
TECHNICALS: The weekly trendline support near .9870 which we looked at yesterday is still supporting the AUD/USD and should be respected. Short-term resistance starts at .9920 (see chart) but the bulls will need to regain 1.0000 in order to start reversing the strong bearish momentum.
TECHNICALS: Trendline support on the weekly chart at 0.9870 (see chart) is likely to provide some initial support but I do not see this as a big level. It looks to me as if the market is intent on testing major support points between .92/.95 and selling rallies back towards prior lows at 1.0110 makes good sense. Hourly resistance levels now start near .9950.
TECHNICALS: It’s probably a good time to take a look at the longer-term charts and see how much downside this move might have (see chart). The overall target in my biased view remains a 61.8% retracement level around .9200 but the first target is the 200-week MA near .9870 and this should attract some profit takers. Short-term resistance looks to be building near .9980 and selling intraday rallies is still favoured given the strength of the down-trend on the daily charts.
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