Big bullish swing in $EURGBP at about 9:30 am this morning, which perhaps caught shorts trading off better than expected PMI figures(?) a little off guard. The basis for a larger recovery is possible as a ‘bull flag’ appears to be developing on a 4-hourly chart. Bears will be wanting a head-and-shoulder reversal, and for this to happen, a move back to 0.718 is needed before a bounce of substance occurs. In the near term, 0.729 looks to be a point of control where either a reversal occurs within the channel, or a breakout emerges. Technicals point to slight weakness.
$EURUSD important support at 1.0710. Confirmed loss could target further support at 1.0650 followed by 1.0610. Upside is capped by resistance at 1.0810, breakout higher could target further resistance at 1.0850 followed by 1.0900.
$SPX point-of-controls at 2065 and 2071.50. Support is at 2058.44 followed by 2051.06 and 2038.05. Confirmed breakout above 2071.45 could potentially target further upside at 2078.83 followed by 2091.80 and 2099.25.
$DJIA Important points-of-control at 17773 and 17828. Confirmed breakout higher could target further upside resistance at 17907 followed by 18041 and 18120. Downside is supported by 17694 followed by 17615 and 17481.
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