EURUSD: Looking to Sell Rallies While Below 1.0712
Two days ago I mentioned how the EURUSD bulls had given up the 1.0825 handle. This level intersects with channel support from the March 9th low, so the break was no doubt a significant development.
A little more than 24 hours later and it seems the pair has now given up yet another key level at 1.0712. This area has played a critical role in directing price action since March 31st of 2015.
With yesterday’s close well below this level, my bearish outlook for the single currency is unchanged. From here I’ll be looking to sell a rotation back to the 1.0712 handle which would serve as a retest as new resistance.
The next key support comes in at 1.0635 followed by 1.0520. Alternatively, a daily close back above 1.0712 would give buyers hope and also expose key resistance at 1.0825.
Barring a miracle, the pair is on track to carve out a weekly bearish engulfing candle of more than 200 pips. This hints at continued weakness going forward and is certainly a development I’ll discuss further in the upcoming weekly forecast.
A little more than 24 hours later and it seems the pair has now given up yet another key level at 1.0712. This area has played a critical role in directing price action since March 31st of 2015.
With yesterday’s close well below this level, my bearish outlook for the single currency is unchanged. From here I’ll be looking to sell a rotation back to the 1.0712 handle which would serve as a retest as new resistance.
The next key support comes in at 1.0635 followed by 1.0520. Alternatively, a daily close back above 1.0712 would give buyers hope and also expose key resistance at 1.0825.
Barring a miracle, the pair is on track to carve out a weekly bearish engulfing candle of more than 200 pips. This hints at continued weakness going forward and is certainly a development I’ll discuss further in the upcoming weekly forecast.
