Cable tested the 20 EMA last week and it held as support. Currently the 20 EMA is at 1.5158. Offsetting this bit of happy news is that it is nudging a downtrend line from late 2009 and is also encountering resistance set by the April highs in the 1.5522 region. 1.5559 is also the daily 200 SMA. On the downside, there’s an uptrend line coming in from early 2009 at 1.4364. If the pair bounces between these two points one could get off some nice trades in the near term, depending on price behavior on the shorter term charts.
Here’s the weekly chart:
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