EURUSD has chopped sideways in NY around current levels

Jim Langlands FX Charts

EURUSD: 1.2239

EurUsd has chopped sideways in NY around current levels after earlier recovering from a 1.2165 low and in the absence of any major data today, it looks likely to be fairly steady again while waiting to see whether the US Government faces a shutdown, in which case the US$ would come under renewed pressure. Also in focus will be the weekend vote in Germany, where the Social Democrats (SPD) are expected to vote on coalition with Chancellor Angela Merkel’s CDU/CSU on Sunday.

1 hour/4 hour indicators: Neutral

Daily Indicators: UpWeekly

Indicators: Turning higher

Preferred Strategy: A neutral stance seems wise heading into Friday trade although the longer term charts do still point to higher levels ahead. Good offers will once again arrive in the 1.2280/1.2320 area while a break below 1.2165 would open the way towards 1.2140. German PPI, EU Current Account and the Michigan Consumer Sentiment Index will be the economic interest today.

Resistance		Support
1.2335	Minor	1.2200	Minor
1.2322	17 Jan high	1.2165	17 Jan low
1.2300	Minor	1.2140	23.6% of 1.1553/1.2219
1.2275	H/S Neckline	1.2120	Minor
1.2264	Minor	1.2100	Minor

Economic data highlights will include:

German PPI, EU Current Account, Michigan Consumer Sentiment Index, Baker Hughes Oil Rig Count

Author

Jim Langlands

FX Charts

Jim Langlands began his trading career in the commodities markets in London in 1976, before moving to Australia in 1979 to work as a floor trader on the Sydney Futures Exchange.

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