EURUSD: Neutral – Prefer to sell rallies

Jim Langlands FX Charts

EURUSD: 1.1898

EurUsd has sharply reversed from the 1.1960 session highs, currently sitting near the low of 1.1895, and from the look of the short term momentum indicators it maybe that we are headed for a further test of the downside. The daily techs are also warning the Euro longs, with an inverted hammer formation hinting at lower levels ahead.

If so, on the downside, minor support will be seen right here, but below which could head back to 1.1875 where the daily cloud top will attract buyers. below that would open the way to 1.1850 and possibly towards 1.1800 although I would be surprised to see it back down there today.

On the topside, resistance will be seen at the session high, if we get there, above which would see little resistance until 1.2000. Beyond this would open the way to 1.2030/50 and even on towards the 8 Sept low at 1.2096.

Preferred Strategy: For Tuesday, I prefer to look to sell into rallies towards 1.1940, but with a tight SL placed above 1.1960.

Sell EurUsd @ 1.1940. SL @ 1.1970, TP @ 1.1850

24 Hour: Neutral – Prefer to sell rallies		Medium Term: Neutral
FX Charts Position:	Short
Resistance		Support
1.2033	20 Sept high	1.1897	Session low
1.2004	22 Sept high	1.1875	Daily cloud top
1.1980	Minor	1.1852	(23.6% of 1.1553/1.1943)
1.1960/64	Session high / (76.4% of 1.2091/1.1553)	1.1835	Minor
1.1930	Minor	1.1800	Minor

Economic data highlights will include:

German Consumer Confidence, US Oct Preliminary Wholesale Inventories, Goods Trade Balance, Case Shiller House Price Index, House Price Index, Richmond Fed Mfg Index, API Weekly Crude Oil Stock Inventory , Fed Speakers: Powell, Dudley and Harker, Treasury Secretary Mnuchin

Interested in EURUSD technicals? Check out the key levels

1. R3 1.2009
2. R2 1.1985
3. R1 1.1942
PP 1.1919
1. S1 1.1876
2. S2 1.1853
3. S3 1.181

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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