EURUSD: Neutral

Jim Langlands FX Charts

EURUSD: 1.1863

Preferred Strategy: The US$ remains under pressure following the FOMC Minutes, with the next directional move likely to come via tomorrow’s CPI figure. In the meantime, the momentum indicators are looking quite positive for the Euro, with the dailies are now pointing a little higher, suggesting that the downside will again be rather limited today. The neckline of the head/shoulder is at 1.1870, and we do not really want to head any higher for it to remain valid or there will be strong dollar liquidation which would see the Euro head towards 1.1900/1.2000. The downside currently looks underpinned at around 1.1800 although I would be surprised to see it trade down there again today. Overall, another range trade may be the plan for Thursday (1.1800/1.1900), but a daily close above 1.1870 would suggest that we are in for further dollar weakness in the days ahead. Taking a punt on the Head/Shoulder formation remaining intact: Sell EurUsd @ 1.1870. SL @ 1.1905, TP @ 1.1770.

24 Hour: Neutral		Medium Term: Neutral
Resistance		Support
1.1930	(61.8% of 1.2092/1.1669)	1.1840	Minor
1.1920	Descending trend resistance	1.1825	Minor
1.1900	Minor	1.1795	Session low
1.1882	(50% of 1.2092/1.1669)	1.1760	200 HMA
1.1867/70	Session high /Neckline resistance	1.1738	10 Oct low

Economic data highlights will include:

EU Industrial Production, US PPI, Monthly Budget Statement, Jobless Claims, EIA Crude Oil Stocks Weekly Change , ECB Speakers; Praet, Draghi, Coeure & Lautenschlager

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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