EURUSD bearish extension threat
A modest pop higher Friday through minor resistance, 1.2965, but still contained below 1.2995 still hesitant in the very near term to extend the bear trend.
However, the breach last week of a key “neckline” support from 2012 still leaves a more bearish mid-month tone.
We look for 1.2995 to try to cap and still aim lower through mid-September, for an important cluster of support from the 2012-14 retracement at 1.2785 and key 2013 cycle lows at 1.2765 and 1.2745.
Through here sees a significant 2012 weekly swing low at 1.2662.
WHAT CHANGES THIS?
Above 1.3040 eases bear risks; through 1.3160 signals a neutral tone, only shifting positive above 1.3220.
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