EURUSD: Mildly Bullish

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

EURUSD

 

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