Wednesday's Reversals: Euro Suffers On Weak PMI

Published 05/23/2018, 04:37 AM
EUR/USD
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AUD/USD
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GBP/JPY
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Apparently traders did not like the PMI data from the Eurozone. The main pair suffered and slipped to the lowest levels in 2018. Buyers are still fighting for the support, which already worked two days ago. That can be a great place for a double bottom formation but for the proper buy signal we will have to wait a bit more.

The drop here is not only the influence of the weaker EUR but also stronger USD. Another instrument where it can be seen is the AUD/USD, where the price is going down weakened by the false breakout of the neckline of the iH&S formation. As long as we are above the orange area we are relatively safe but buyers need to be extra careful now.

GBP/JPY dropped like a rock and is now reaching and ultimate selling place. Once the price will break the combination of important long-term supports, sellers will be able to claim the bearish victory, which can bring them thousands of pips in the next few weeks.

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