EURUSD: 1.1792
Preferred Strategy: EurUsd had a strong rise on the back of solid EU data, negating the Head/Shoulder formation, and will now await today’s all-important US CPI, with the result, either side of the expected 1.7%yy to decide the next directional move for the pair. The 4 hour/daily momentum indicators do suggest further gains are possible, which would allow a run towards 1.1900 although there are plenty of previous highs ahead to provide resistance, which could stand in the way. The downside would find good support at the 100 DMA, at 1.1735, while below that would take us back towards 1.1700 and lower. This seems less likely right now and the US data will decide the direction, with the dollar needing an above-expectation reading in order to regain its balance.
| 24 Hour: Mildly Bullish | Medium Term: Neutral | ||
| FX Charts Position: | Short – SL above 1.1880 | ||
| Resistance | Support | ||
| 1.1880 | 12 Oct high | 1.1780 | Minor |
| 1.1857 | 20 Oct high | 1.1760 | Minor |
| 1.1836 | 26 Oct high | 1.1735 | 100 DMA |
| 1.1822 | (50% pivot of 1.2091/1.553) | 1.1700 | Minor |
| 1.1805 | Session high | 1.1660 | Session low |
Economic data highlights will include:
EU Trade Balance, US Retail Sales, CPI, Business Inventories
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