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We’ve had to continually adjust this slope and while we can’t rely on it yet too heavily, the upper does once again highlight the 1278/79 zone for near-term resistance. Ultimately a breach above 1290 would be needed to shift the focus back to the long-side targeting a breach above the monthly opening-range high / 50% retracement at 1306/09.
Bottom line: from a trading standpoint I’ll be looking for prices to stabilize above this level to suggest a more significant low is in place. A daily close below would risk a drop into subsequent support targets- such a scenario would have me looking for exhaustion / long-entries on a move into confluence support zones at 1250 & 1246.
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—Written by Michael Boutros, Currency Strategist with DailyFX
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.