EURUSD: Prefer to buy dips
|EURUSD: 1.0797
€/Usd had a rangebound session on Friday (1.0760/1.0817), with the market surprisingly, little moved by Trump’s inability to get his healthcare act passed through Congress, leaving the outlook unchanged on Monday.
From a technical perspective, after moving sideways on Friday, the short term momentum indicators are now looking neutral, so another choppy session today would not really surprise given the comparative lack of data, although the various central bank speakers or the IFO may create some volatility. As before, a topside a break of 1.0830 could allow for a run towards 1.0873 (8 August high) and eventually to the 200 DMA (1.0890). Beyond 1.0900, unlikely today, could then head towards 1.0935 and at some stage, on to 1.1000. On the downside, below the Friday low of 1.0759, minor support will be seen at the various Fibo levels from the move up from the recent 1.0490 low, beginning at 1.0745 and then at 1.0695. As before, given the positive look of the daily charts, it would appear that buying dips is still the plan but I would keep a SL placed below 1.0740, while on the topside I am looking for an eventual break of 1.0830, hoping for a run towards 1.0900.
| 24 Hour: Prefer to buy dips | Medium Term: Prefer to buy dips | ||
| Resistance | Support | ||
| 1.0932 | (61.8% of 1.1299/1.0340) | 1.0759 | Friday low |
| 1.0890 | 200 DMA | 1.0745 | (23.6% of 1.0494/1.0824) |
| 1.0873 | 5 Aug high | 1.0715 | Minor |
| 1.0829 | 2 Feb high | 1.0698 | (38.2% of 1.0494/1.0824) |
| 1.0824 | 22 Mar high | 1.0660 | (50% of 1.0494/1.0824) |
Economic data highlights will include:
M: German IFO Business Climate/Expectations, ECB Praet Speech, Dallas Fed Mfg Business Climate, Fed’s Evans/Kaplan Speeches
T: US Wholesale Inventories, Goods Trade Balance, Case Shiller House Price Index, Markit flash Services/Composite PMIs, Consumer Confidence Feds George/Kaplan Speeches, API Weekly Crude Oil Stock Inventory.
W: US Pending Home Sales, Feds Evans/Williams/Rosengren Speeches, EIA Crude Oil Stocks Weekly Change
T: German Import/Export Index, EU Economic Sentiment Indicator, Industrial Confidence, Services Sentiment, Business Climate, German Provisional CPI/HICP, US GDP (Q4), US Personal Consumption/Expenditure, Jobless Claims, Fed’s Kaplan/Williams Speeches
F: German Retail Sales (Feb), EU Provisional CPI, US Personal Consumption/Expenditure – Index (Mar), Chicago Purchasing Managers index, Michigan Consumer Sentiment Index, Baker Hughes Oil Rig Count
Interested in EURUSD technicals? Check out the key levels
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