EURUSD: Prefer to buy dips
|EUR/USD: 1.0744
The Euro made it up to a high of 1.0776 today, just shy of last week’s high, before drifting lower, to 1.0725 in what has been another tight range on Monday. In the absence of any major date on Tuesday, it may be a similar session ahead.
The 4 hour charts appear to be turning to point lower, while the dailies are still looking constructive so a neutral stance is again required. If the Euro can make further headway, then above the trend high (1.0782) , sellers would gather at the descending trend resistance at around 1.0790, which should be strong at the first attempt. Beyond there though, could then head towards 1.0830, a break of which we could then see a run towards 1.0873 (8 August high) and eventually on to the 200 DMA (1.0900). On the downside, support will be seen at the minor Fibo levels from the move up from the recent 1.0490 low, beginning at 1.0715 and then at 1.0670. As before, given the increasingly positive look of the daily charts, it would appear that buying dips is the current plan although I remain wary of buying the Euro towards the top end of the recent range.
| 24 Hour: Prefer to buy dips | Medium Term: Neutral | ||
| Resistance | Support | ||
| 1.0900 | 200 DMA | 1.0724 | Session low |
| 1.0873 | 5 Aug high | 1.0714 | (23.6% of 1.0494/1.0782) |
| 1.0829 | 2 Feb | 1.0670 | (38.2% of 1.0494/1.0782) |
| 1.0790 | Descending trend resistance | 1.0635 | (50% of 1.0494/1.0782) |
| 1.0777/82 | Session high/17 March high | 1.0605 | (61.8% of 1.0494/1.0782) |
Economic data highlights will include:
US Current Account, Fed’s George/Dudley Speeches, API Weekly Crude Oil Stock Inventory
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