Daily technical and trading outlook – EUR/USD
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Last Update At 22 Jul 2021 00:12GMT
Trend daily chart
Down.
Daily Indicators
Bullish convergences.
21 HR EMA
1.1788
55 HR EMA
1.1754
Trend hourly chart
Sideways.
Hourly Indicators
Rising.
13 HR RSI
54
14 HR DMI
+ve
Daily analysis
Recovery before one more fall.
Resistance
1.1881 - Jul 09 high.
1.1850 - Last Thur's high.
1.1824 - Mon's high.
Support
1.1753 - Wed's fresh 3-1/2 month low.
1.1705 - 2021 low (Mar 31).
1.1689 - Oct 15, 2020, low.
EUR/USD - 1.1793
Although the euro remained on the back foot in Asia Wed n briefly penetrated Tue's 1.1756 low to a fresh 3-1/2 month trough of 1.1753 in Europe, short-covering lifted price to 1.1782, then later to 1.1804 in NY.
On the bigger picture, despite euro's LT up move FM 2017 near 14-year low of 1.0341 to a fresh 3-year peak of 1.2555 in mid-Feb 2018, subsequent decline to a near 3-year 1.0637 low in Mar 2020 signals correction has ended. Despite an impressive up move to a near 33-month 1.2349 peak in early Jan 2021, a subsequent decline to 1.1705 (Mar) signals top is made. Although the euro climbed to 1.2266 in May, the subsequent fall to 1.1773 in mid-Jul suggests a re-test of 2021 bottom at 1.1705 would be seen, a break would extend MT fall FM 1.2349 TWD 1.1603 b4 correction occurs due to 'bullish convergences' on daily indicators. Only abv 1.1894 signals temp. low made n risks stronger retracement TWD 1.1975, break, 1.2093.
Today, as Wed's 1.1753 low was accompanied by 'bullish convergences' on hourly indicators, subsequent recovery signals temp. low is made n consolidation is seen ahead of the key ECB announcement. As long as 1.1850 res holds, weakness TWD 2021 bottom at 1.1705 is likely. Only abv 1.1850 risks 1.1880/90.
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