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Notes: EURUSD, after climbing to monthly high corrected to the downside and closed the day at 1.0580.I expect the range 1.0625 - 1.0500 to continue and the high to be broken in the coming day. Perhaps Friday's NFP will be the catalyst ( given it will come in worse than expected ) Long positions could be established around 50% of the Fibonacci retracement of the most recent leg up at 1.0550.
EURUSD tested the support at 1.05 level and closed the day near it. This is the lower band of the rang I mentioned in previous analysis. If the current support holds, the price might take a turn up from here but if the downtrend continues, breaking below 1.05, we are likely to see the WM1 Pivot at 1.0450. Weekly momentum is oversold and suggests upside. The only question is how far it drops before it reverses to the upside.
Aussie traded sideways after positive GDP but it managed to print lower low and the retracement in one day. My short position was filled at 0.7690 on a volatile spike last night. Stop loss is set at 0.7735 ( just above the recent resistance ) I expect the pair to move close to it and collapse down. Weekly momentum is overbought. Daily might need another swing to full unfold the decline.
Notes: Aussie finally is rolling over the the downside. The pair traded lowest in few week finally breaking 0.7660. I would expect this to print a little lower, reverse to test the resistance at 0.7650 -0.7700 area and make a large correction to the downside. All elements have been in place for the last 3 weeks. Weekly momentum is clearly overbought, the price tested and got rejected from a major resistance. All we need now is a lower low and the resistance re-test to enter long awaited short positions. Lets see... Watch tonight's AUD GDP. It could provide needed volatility ( if prints lower than expected figure )
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