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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