EURUSD: Neutral

Jim Langlands FX Charts

EURUSD: 1.1467

Preferred 24-hour Strategy: Neutral

EurUsd remained pretty much within its recent range on Friday, with most of the action to be seen through the crosses, and with the momentum indicators looking mixed a neutral stance is again required on Monday. The daily charts may still be trying to build a topping formation so, in the near-term I still prefer to sell rallies with a stop placed tight above 1.1500. Further out though, this possibly looks unconvincing as the ECB Meeting is due on Thursday, with expectations building that Mario Draghi may ramp up the rhetoric to begin tapering QE at the Sep 7 ECB Meeting, which would send the Euro sharply higher.

Technically, the initial support now lies nearby, at Friday’s low (1.1390) and the 13 July low of 1.1370, below which could then run towards 1.1345/50 and then to 1.1310/15.

On the topside, the initial resistance will be seen at Friday’s high of 1.1470 and at 1.1485/90 ahead of 1.1500. Above here, only minor hurdles exist to stop the Euro from heading to the May 2016 high of 1.1616.

24 Hour Outlook: Neutral		Medium Term: Prefer to buy dips.
Resistance		Support
1.1616	2 May 16 high	1.1425	Minor
1.1580	Minor	1.1390	Friday low
1.1535	Minor	1.1370	13 July low
1.1488	12 July high	1.1345	(38.2% of 1.1117/1.1489)
1.1471	Friday high	1.1310	5 July low

Economic data highlights will include:

M: EU CPI (June), BuBa Monthly Report, New York State Empire Mfg Index

T: German/EU ZEW Economic Sentiment Survey, US NAHB Housing Market Index, Import/Export Index, API Weekly Crude Oil Stock Inventory

W: EU Construction Orders, Building Permits, Housing Starts EIA Crude Oil Stocks Weekly Change

T: EU Current Account, ECB Meeting/Interest Rate Decision/Press Conference/Statement, US Jobless Claims, Philadelphia Fed Mfg Survey

Interested in EURUSD technicals? Check out the key levels

1. R3 1.1486
2. R2 1.1481
3. R1 1.1477
PP 1.1472
1. S1 1.1467
2. S2 1.1462
3. S3 1.1458

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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