EURUSD: Mildly Bullish

Jim Langlands FX Charts

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

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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