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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Daily EURUSD Chart
Weekly EURUSD Chart