EURUSD: Neutral –Prefer to buy dips

Jim Langlands FX Charts

EURUSD: 1.1852

EurUsd is firm again today, after the solid EU PMI readings although the range has been tight because of the US holiday.

The 4 hour/daily momentum indicators are still pointing higher, and further gains look possible so buying dips is currently favoured. Further out though, the weeklies do still point lower so I would expect conditions to be choppy but with a near term upside bias.

If so, above the near term resistance at 1.1855/60 would find good sellers at 1.1880/85, beyond which would then allow a run towards 1.1900+, with little resistance then to be seen until 1.2000.

On the downside, minor support will today be seen at 1.1800/10 a break of which would allow a return to 1.1780/1.1800 ahead of stronger levels at 1.1735 although this looks unlikely to be seen heading into the weekend.

Preferred Strategy: For Friday, I prefer to adopt a fairly neutral stance given the US long weekend holiday, although buying dips may be a plan.

The German IFO will be the data risk today, while speeches from the ECB’s Constancio and Coeure.

24 Hour: Neutral –Prefer to buy dips		Medium Term: Neutral – Prefer to sell rallies
FX Charts Position:	Flat
Resistance		Support
1.2004	22 Sept high	1.1830	Minor
1.1936	Minor	1.1812	Session low
1.1900	Minor	1.1800	Minor
1.1885	(61.8% of 1.2091/1.1553)	1.1770	200 HMA
1.1855/57/59	Session high/20 Oct high/16 Nov high	1.1735/31	100 DMA /22 Nov low

Economic data highlights will include:

German IFO Business Climate/Expectations, US Flash Manufacturing/Services/Composite PMIs, Baker Hughes Oil Rig Count

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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