EURUSD: Neutral

EURUSD: 1.1829

Preferred Strategy:  EurUsd is steady ahead of today’s release of the US inflation figures after having tested the neckline of the head/shoulder by reaching 1.1879. A soft inflation reading today would see the dollar come under pressure and would then take out the stops above the neckline and would see the Euro head towards 1.1900/1.2000. A strong number would underpin the dollar and send the Euro lower, potentially setting up an eventual H/S objective of around 1.1550 or an even bigger head shoulder target of 1.1235. Don’t get excited! This is a very long way off.. Overall, another range trade may be the plan for Friday ahead of the US data (1.1800/1.1.1870), beyond which just go with the flow.

24 Hour: Neutral   Medium Term: Mildly Bearish  – Prefer to sell rallies  
Resistance   Support  
1.1930 (61.8% of 1.2092/1.1669) 1.1826 Session low
1.1920 Descending trend resistance 1.1795 11 Oct low
1.1900 Minor 1.1760 200 HMA
1.1879/82 Session high/(50% of 1.2092/1.1669) 1.1725 Minor
1.1870 Neckline resistance 1.1700 Minor

Economic data highlights will include:                                      

German CPI/HICP, US Retail Sales, CPI, Michigan Consumer Sentiment Index, Business Inventories, Baker Hughes Oil Rig Count.



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