EURUSD: Neutral –Prefer to buy dips
|EURUSD: 1.1932
EurUsd soared higher on Friday in taking advantage of the solid data from the EU and it finished near session highs of 1.1943 in thin conditions after having taken out the important 1.1880 resistance.
The Euro looks solid again on Monday, with both the 4 hour/daily momentum indicators pointing higher, and above Friday’s high would see little resistance until 1.2000. Beyond this would open the way to 1.2030/50 and even on towards the 8 Sept low at 1.2096.
On the downside, minor support will be seen at 1.1900/15 today, below which could head back to 1.1880 although this currently looks unlikely.
Preferred Strategy: For Monday, I prefer to adopt a fairly neutral stance although buying dips may be a plan as it looks as though we are headed to 1.2000.
Buy EurUsd @ 1.1900. SL @ 1.1870, TP @ 1.1990
| 24 Hour: Neutral –Prefer to buy dips | Medium Term: Neutral | ||
| FX Charts Position: | Flat | ||
| Resistance | Support | ||
| 1.2050 | Minor | 1.1915 | Minor |
| 1.2033 | 20 Sept high | 1.1900 | Minor |
| 1.2004 | 22 Sept high | 1.1875 | Daily cloud top |
| 1.1980 | Minor | 1.1852 | (23.6% of 1.1553/1.1943) |
| 1.1943 | Friday high | 1.1835 | Minor |
Economic data highlights will include:
M: EU Financial Stability Report, US New Home Sales, Dallas Fed Mfg Business Climate
T: German Consumer Confidence, US Oct Preliminary Wholesale Inventories, Goods Trade Balance, Case Shiller House Price Index, House Price Index, Richmond Fed Mfg Index, API Weekly Crude Oil Stock Inventory
W: EU Economic Sentiment Indicator, Industrial Confidence, Services Sentiment, Business Climate, German Preliminary CPI (Nov), US Q3 Preliminary GDP , US Personal Consumption/Expenditure, Pending Home Sales, Janet Yellen testifies to Congress, OPEC Meeting
T: German Retail Sales, Import/Export Index, Unemployment, EU Unemployment, US Personal Consumption/Expenditure Price Index, Personal Spending, Jobless Claims, Chicago Purchasing Managers Index
F: EU Flash Manufacturing PMIs, I’m Mfg/Prices Paid, Construction Spending Baker Hughes Oil Rig Count
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