EURUSD: Neutral-Prefer to sell rallies

Jim Langlands FX Charts

EURUSD: 1.1820

Preferred Strategy: EurUsd was choppy within the tight 1.1800/75 range on Friday but ended up going nowhere, leaving the outlook a little cloudy at the start of the week. The bigger picture still seems to be building a head/shoulder top, so I do prefer an eventual run lower but in the meantime the current conditions look set to persist. A short term neutral stance seems wise and selling rallies is preferred. A move above 1.1880 could then see a run towards 1.1900/10, where I would look to sell again, with a SL above 1.1970.

Sell EurUsd @ 1.1880. SL @ 1.1920, TP @ 1.1680

Sell EurUsd @ 1.1970. SL @ 1.2020, TP @ 1.1750

24 Hour: Neutral-Prefer to sell rallies		Medium Term: Mildly Bearish – Prefer to sell rallies while under 1.1880
Resistance		Support
1.1930	(61.8% of 1.2092/1.1669)	1.1804	Friday low
1.1920	Descending trend resistance	1.1795	11 Oct low
1.1900	Minor	1.1760	200 HMA
1.1879/82	12 Oct high/(50% of 1.2092/1.1669)	1.1725	Minor
1.1874/70	Session high/Neckline resistance	1.1700	Minor

Economic data highlights will include:

M: EU Trade Balance, Buba, New York State Empire Mfg Index

T: German Wage Price Index, German/EU ZEW Economic Sentiment Survey, EU CPI, US Import/Export Index, Industrial Production, Capacity Utilisation, NAHB Housing Market Index, API Weekly Crude Oil Stock Inventory

W: Extraordinary EU Economic Summit, EU Construction Output, US Building Permits, Housing Starts, Beige Book ,EIA Crude Oil Stocks Weekly Change

T: EU Council Meeting, US Jobless Claims, Philadelphia Fed Mfg Survey

F: German PPI, EU Current Account, US Existing Home Sales, 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.

EUR/USD holds near 1.1900 ahead of US data

EUR/USD struggles to build on Monday's gains and fluctuates near 1.1900 on Tuesday. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD declines toward 1.3650 on renewed USD strength

GBP/USD stays on the back foot and declines to the 1.3650 region on Tuesday. The negative shift seen in risk mood helps the US Dollar (USD) gather strength and makes it difficult for the pair to find a foothold. The immediate focus is now on the US Retail Sales data.

Gold stabilizes above $5,000 ahead of US data

Gold enters a consolidation phase after posting strong gains on Monday but stays above the $5,000 psychological mark and the daily swing low. US Treasury bond yields continue to edge lower on news of Chinese regulators advising financial institutions to curb holdings of US Treasuries, helping XAU/USD hold its its ground.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.