Euro Focus is on Support in mid 14000s
Equities have traded sideways for the entire year and a triangle may be close to complete. The next few days are a crapshoot but I am looking for a test of at least 1300 in the S&P index and maybe a final tag of the trendline from the 2009 lows (in red above) near 1275 before the next bull leg. The bearish implications from the potential head and shoulders and island reversal in SPY remain but a break below the trendline from the 2009 low is needed to confirm.
I’m taking my cues on risk trends from equities so additional USD strength (continuation of today’s reversal in EURUSD) must be considered near term. Expect support at 14060 and 14010 (50% and 61.8% retracements of rally from the low) in EURUSD. Short term resistance for Asia is at 14175.
AUDUSD 10800 has been strong as resistance and near term weakness could extend to 10650 but I’m expecting a low near there over the next several days. That level is defined by the 50% retracement of the rally from 10525, 7/6 low and 20 day average.
Largest Daily Range in 20 days – AUDNZD and EURDKK
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