Our previous Update on EUR/USD highlighted a key reversal week in early May, which has marked the start of a consolidation/correction phase. Following renewed weakness we look at where the next supports reside.
- WEEKLY CHART -CONTINUATION The early May key reversal week was just ahead of the 1.5055 76.4% retracement. It marked a pause and at least temporary reversal in uptrend. Next support has been neared, the 38.2% pullback at 1.3770, with rising support line just below. Breaks of these would give bears a boost. Also see Daily chart.
- DAILY CHART: Recent weakness, after earlier failure at the former 76.4% level, has kept bears in control, with downside focus on s/term channel base support around 1.3650. This will soon coincide with the lower bull channel base projection at 1.3555 currently, and temporary support would not be a surprise in this area. However, of equal interest is the lower 1.3405/1.3360 area, a Fibo projection and 76.4% pullback level.
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