EURUSD has retraced a little from recent highs at 1.25372 and in the process, appears like it may be forming a Bull flag. It is today testing the top of the flag pattern around 1.24600 and if a break out should occur then 1.25000 should be tested followed, by resistance at the high in quick succession. The price may fall back a little from the top of the flag, at which point supporting levels will come into play around 1.23759. The supporting 50-period moving average on this 4-hour chart is located at 1.23587 and this has held on in a recent retest. A drop below this MA will see short position taking control, with a lower low created and a retest of support at 1.23223, the first hurdle before the trend lines at 1.23000. The rising 100-period MA is at 1.22654 currently, with support below at 1.22440 and 1.22141. A loss of this supportive area can lead to a drop to the 200-period at 1.21337 and the 1.21000 round number support level. US30 Index The US stock market has been achieving excellent returns from its current bull market. The high is now set at 26700.00. There has been a retracement lower, setting up a very tradable trend line in red should the trend continue and breakout towards the high again. For now, the 50 (Blue) and 55 (Black) period MAs are keeping the price in check and reinforcing the red trend line as resistance. The next resistance above is 26322.90, followed by 26486.00. When the price dropped below the broken blue trend line it used current nearby support at 26155.2 to rally from and tested the previous supporting trend line as resistance, which held and pushed price lower to current levels. This broken support turned resistance blue trend line is at 26390.00 and rising. As support for the moment, there is the small blue trend line holding price up at 26105.00, below which the 26000.00 round number level offers support with the 100-period MA close by. A loss here can signal a more determined drive lower by bears and points to 25700.00 as an important area, being the most recent low. The rising trend line and 200-period MA are near 25500.00 currently. A deep retracement will entice Bullish traders to buy the dip and drive the price back higher, ensuring any selloff is short-lived unless the fundamentals significantly change.
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