EURUSD: Neutral – Possibly sell short term strength
|EURUSD: 1.1759
EurUsd has had a choppy session, with the crosses driving much of the price action, particularly EurChf and EurJpy, which both headed sharply lower. EurUsd did see a brief spike below 1.1700, reaching 1.1688 although it quickly turned higher again and is finishing the day towards the session high of 1.1763.
It could be a similar session ahead given the absence of any major data to drive direction, with traders awaiting developments in the spat between the US/N Korea.
On the downside, back below 1.1700 and the session low of 1.2688 would allow a move towards the 28 July low of 1.1670. Under there would see a test of the rising trend support, currently at 1.1620 and possibly on towards 1.1600, although not yet, and the short term momentum indicators actually look slightly more supportive today.
The topside also looks a little limited on Thursday, and 1.1760/70 will still offer decent resistance but above which could see a run back to 1.1800 ahead of the 8 Aug high of 1.1823. If we do head higher, which seems unlikely given the negative look of the daily charts, further points of resistance would be seen at minor Fibo levels, ahead of the 4 Aug high of 1.1882 and the trend high at 1.1909. Back above 1.0910, there is very little resistance to stand in the way of a move towards 1.2000, with the next Fibo level is not actually seen until 1.2165 (50% of 1.3993/1.0340) although this seems the less likely direction in the next day or two.
Preferred Strategy: Mildly Bearish. Selling short term strength, but looking for a run, eventually, towards 1.1620/1.1650 seems to be the plan. SL above 1.1815 today. It could end up being a rangebound session in the absence of any major data, with Donald Trump’s Twitter account likely to provide any guidance.
| 24 Hour: Neutral – Possibly sell short term strength | Medium Term: Mildly Bearish | ||
| Resistance | Support | ||
| 1.1857 | (76.4% of 1.1909/1. 1688) | 1.1715 | Minor |
| 1.1825 | (61.8% of 1.1909/1. 1688) | 1.1688 | 8 Aug low |
| 1.1800 | (61.8% of 1.1909/1. 1688) | 1.1650 | 27 July low |
| 1.1772 | 200 WMA /(38.2% of 1.1909/1. 1688) | 1.1620 | Rising trend support |
| 1.1763 | Session high | 1.1600 | (38.2% of 1.1118/1.1909) |
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