1279. Interim resistance stands at 1295 with a breach above 1309 needed to fuel the next leg higher targeting the 61.8% retracement at 1309 & the yearly high-day close at 1346. A break lower from here still has to contend with a key support zone at 1263/67.
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We’ve re-adjusted our slope from last week with basic trendline support off the monthly lows further highlighting the near-term support confluence at the 61.8% retracement / monthly open at 1278/79. Look for a reaction there with a break lower risking a larger correction toward 1263 & 1240-(broader bullish invalidation).
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. A breach / close above 1295 would open things up and shift the focus towards the monthly opening-range highs.
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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.