EURUSD: Range Trade
|EURUSD: 1.0904
The Euro was again capped at 1.0950 on Wednesday, allowing the 4 hour charts to turn lower from overbought extremes as the dollar regained some of its recent lost ground. The Euro has traded to a low of 1.0855 ahead of a bounce, to currently sit in the middle of the day’s range at 1.0900.
Good resistance will again arrive at the session high, and the 4 hour charts now suggest that this is likely to remain intact for the coming session. If wrong, a break of 1.0950 would target the 100 WMA, a break of which sees little resistance until 1.1070. On the downside, support will be seen at the session low of 1.0855, and below there at 1.0820. Under here would suggest the chance of a top being in place and the possibility of filling in the chart gap, which could see the Euro head back towards 1.0730 although this remains some way off, and given that the dailies remain positive, buying dips today towards 1.0820 would seem to be the plan. Overall use 1.0820/1.0950 as a guide, with something like a 30 point SL on either side, although the algos are likely to provide for some choppy conditions after the ECB announcement/Press Conference so some caution is warranted. There will also be plenty of US data so it could be quite a busy day.
| 24 Hour: Range Trade | Medium Term: Mildly bullish | ||
| Resistance | Support | ||
| 1.1070 | (76.4% of 1.1300/1.0340) | 1.0875 | Minor |
| 1.1035 | Minor | 1.0861/55 | (23.6% of 1.0570/1.0949)/Session low |
| 1.0990 | 100 WMA | 1.0805 | (38.2% of 1.0570/1.0949) |
| 1.0950 | Session high | 1.0760 | (50% of 1.0570/1.0949) |
| 1.0930 | (61.8% of 1.1300/1.0340) | 1.0730 | Chart Gap |
Economic data highlights will include:
German Consumer Confidence, EU Economic Sentiment Indicator, Industrial Confidence, Services Sentiment, Business Climate, ECB Interest Rate Decision/Press Conference, US Jobless Claims, Durable Goods Orders, Pending Home Sales, Kansas Fed Mfg Activity.
Interested in EURUSD technicals? Check out the key levels
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