EURUSD: Prefer to sell rallies
|EURUSD: 1.1195
The Euro climbed off its early lows of 1.1138, in choppy trade, to finish just under 15 June highs of 1.1201, with the dollar under broad pressure after the release of some soft US housing data, taking some of the steam out of the upbeat outlook from the Fed in the FOMC statement.
With the 4 hour momentum indicators looking a little more supportive, for the coming session, we could see a squeeze above 1.1200 and on towards 1.1230 and possibly to 1.1250.
On the downside, with the daily momentum indicators still looking negative further losses look likely at some stage. Minor support should now arrive at 1.1165, ahead of last week’s lows at just above 1.1130. Beyond there would allow a move to 1.1100/10 and possibly to 1.1075 and 1.1015 although this looks to have been delayed for now.
While the dailies point lower, selling rallies towards 1.1220, with a SL placed above 1.1255 seems to be the plan although with little data due today it may be a fairly quiet session.
| 24 Hour: Prefer to sell rallies | Medium Term: Mildly Bearish | ||
| Resistance | Support | ||
| 1.1295/1.1300 | 14 June high /9 Nov high | 1.1065 | Minor |
| 1.1255 | (76.4% pivot of 1.1295/1.1131) | 1.1138/31 | Friday low /15 June low |
| 1.1232 | (61.8% pivot of 1.1295/1.1131) | 1.1108 | 30 May low |
| 1.1215 | 200 HMA | 1.1075 | 18 May low |
| 1.1201 | Friday high | 1.1067 | (23.6% of 1.0340/1.1295) |
Economic data highlights will include:
M: BuBa Monthly Report, EU Construction Output, Fed’s Dudley Speech
T: EU Current Account (May), German PPI, US Current Account (Q1), Fed Monetary Policy Report, API Weekly Crude Oil Stock Inventory
W: ECB Non-Monetary Policy Meeting, US Existing Home Sales, EIA Crude Oil Stocks Weekly Change
T: EU Economic Bulletin, US Jobless Claims, House Price Index, Kansas Fed Mfg Activity, EU Consumer Confidence
F: EU/US Markit Flash Manufacturing/Services/Composite PMIs, US New Home Sales, Baker Hughes Oil Rig Count
Interested in EURUSD technicals? Check out the key levels
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