EURUSD: Neutral – Possibly sell short term strength

Jim Langlands FX Charts

EURUSD: 1.1759

EurUsd has had a choppy session, with the crosses driving much of the price action, particularly EurChf and EurJpy, which both headed sharply lower. EurUsd did see a brief spike below 1.1700, reaching 1.1688 although it quickly turned higher again and is finishing the day towards the session high of 1.1763.

It could be a similar session ahead given the absence of any major data to drive direction, with traders awaiting developments in the spat between the US/N Korea.

On the downside, back below 1.1700 and the session low of 1.2688 would allow a move towards the 28 July low of 1.1670. Under there would see a test of the rising trend support, currently at 1.1620 and possibly on towards 1.1600, although not yet, and the short term momentum indicators actually look slightly more supportive today.

The topside also looks a little limited on Thursday, and 1.1760/70 will still offer decent resistance but above which could see a run back to 1.1800 ahead of the 8 Aug high of 1.1823. If we do head higher, which seems unlikely given the negative look of the daily charts, further points of resistance would be seen at minor Fibo levels, ahead of the 4 Aug high of 1.1882 and the trend high at 1.1909. Back above 1.0910, there is very little resistance to stand in the way of a move towards 1.2000, with the next Fibo level is not actually seen until 1.2165 (50% of 1.3993/1.0340) although this seems the less likely direction in the next day or two.

Preferred Strategy: Mildly Bearish. Selling short term strength, but looking for a run, eventually, towards 1.1620/1.1650 seems to be the plan. SL above 1.1815 today. It could end up being a rangebound session in the absence of any major data, with Donald Trump’s Twitter account likely to provide any guidance.

24 Hour: Neutral – Possibly sell short term strength		Medium Term: Mildly Bearish
Resistance		Support
1.1857	(76.4% of 1.1909/1. 1688)	1.1715	Minor
1.1825	(61.8% of 1.1909/1. 1688)	1.1688	8 Aug low
1.1800	(61.8% of 1.1909/1. 1688)	1.1650	27 July low
1.1772	200 WMA /(38.2% of 1.1909/1. 1688)	1.1620	Rising trend support
1.1763	Session high	1.1600	(38.2% of 1.1118/1.1909)

Economic data highlights will include:

US PPI, Jobless Claims, Monthly Budget Statement, Fed’s Dudley Speech

Interested in EURUSD technicals? Check out the key levels

1. R3 1.5044
2. R2 1.4991
3. R1 1.4948
PP 1.4895
1. S1 1.4852
2. S2 1.4799
3. S3 1.4755

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.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.