EURUSD: Prefer to sell rallies
|EURUSD: 1.1596
Preferred Strategy: EurUsd has had another tight session hugging 1.1600 and it could be the same again today although the China Oct inflation data could impact risk sentiment in Asia, while Trump headlines from China might create some waves. Otherwise there is little to drive markets again for the coming session.
In the short term, the momentum indicators are flat and offer little hint in either direction although the 4 hour charts may be pointing to slightly higher levels and a run towards 1.1630 would not really surprise.
On the downside, support will be seen at and 1.1358 and at 1.1550 and then again at 1.1500/10 below which there is little support until 1.1475/80.
As before, as long as the Euro should hold below 1.1675 on a daily-close basis, with the eventual target being at around 1.1250, pretty much in line with the 200 DMA and if we do see a daily close below 1.1570 at any stage we may begin to see an acceleration to the downside, to where 1.1510 will be the next support.
A topside break of 1.1675 would trigger stops and could see a run back to 1.1700 where the 100 DMA will provide stern resistance, but above there could see a bigger squeeze towards 1.18000. At this stage this looks doubtful. As long as we don’t see a daily close above 1.1700, I prefer to trade from the short side.
Sell EurUsd @ 1.1670 & @ 1.1700. SL @ 1.1730, TP @ 1.1500.
| 24 Hour: Prefer to sell rallies | Medium Term: Mildly Bearish | ||
| FX Charts Position: | Short – Looking to add to the position into strength | ||
| Resistance | Support | ||
| 1.1686/90 | 3 Nov high /(38.2% of 1.1879/1.1574) | 1.1578 | Session low/Rising trend support |
| 1.1675 | H.S. Neckline | 1.1553 | 7 Nov low |
| 1.1623/30 | 6 Nov high (23.6% of 1.1879/1.1653) | 1.1525 | Minor |
| 1.1615 | 7 Nov high | 1.1510 | Rising trend support/(38.2% of 1.0570/1.2091) |
| 1.1610 | Session high | 1.1478 | 20 July low |
Economic data highlights will include:
German Current Account, Trade Balance, EU Economic Bulletin/Growth Forecasts, US Wholesale Inventories, Jobless Claims
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