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Talking Points:
- EUR/USD Technical Strategy: Flat
- Euro may have topped after testing 11-month trend line resistance
- Confirmation sought on clear break of corrective upswing support
The Euro put in a bearish Dark Cloud Cover candlestick pattern below trend line resistance guiding prices lower since May 2016, hinting a major reversal may be ahead. Critically, confirmation of down trend resumption is conspicuously absent for the time being.
From here, a daily close below counter-trend line support at 1.0813 opens the door for a test of resistance-turned support at 1.0682. Alternatively, a break above 1.0874 (trend line, former support) paves the way for a move above the 1.09 figure, with a noteworthy barrier coming in at 1.0966.
A clear-cut violation of the series of higher highs and lows set from early-March lows would go a long way toward confirming that sellers have retaken the initiative. In the meantime, opting to wait on the sidelines seems most prudent.
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