EURUSD Outlook: Bulls remain in play for fresh attack at 1.1733 pivot

Slobodan Drvenica Windsor Brokers

EURUSD

Firmer tone in European session after quiet trading in Asia resulted in fresh probe above 1.1700 handle, following multiple failure to close above here.
Upticks in past few sessions were capped just under 1.1733 (28 Aug high), leaving several daily candles with long upper shadows which confirms the strength of resistance zone.
Daily techs remain bullish as broken 100SMA holds dips and north-heading momentum supports the advance.
Also, weaker dollar on lower than expected tariffs the US and China imposed to each other and concerns that NAFTA talks between the US and Canada would result in no agreement this week, keeps the single currency supported.
Bulls need clear break above recent congestion and 1.1733 to signal continuation and expose next pivot at 1.1780 (Fibo 38.2% of 1.2555/1.1300 descend).
Broken 100SMA offers initial support at 1.1663, with deeper dips expected to find ground above 1.1641 (converged 10/20SMA’s) and maintain bullish bias.

Res: 1.1724; 1.1733; 1.1750; 1.1780
Sup: 1.1663; 1.1641; 1.1616; 1.1578

Interested in EURUSD technicals? Check out the key levels

1. R3 1.1774
2. R2 1.1745
3. R1 1.1709
PP 1.1679
1. S1 1.1643
2. S2 1.1614
3. S3 1.1578

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

GBP/USD flirts with tops near 1.3470

GBP/USD manages to regain composure and challenge the area of daily highs around 1.3470 on Friday. Cable picks up pace despite marginal gains in the Greenback in a context of swelling geopolitical tensions and rising global oil prices.

EUR/USD trims losses, back above 1.1500

EUR/USD picks up some pace and bouces off earlier lows, reclaiming the 1.1500 threshold and beyond at the end of the week. The pair’s modest pullback follows a persistent risk-averse market mood and renewed buying interest for the US Dollar.

Gold: The $4,000 mark holds the downside for now

Gold faces renewed selling pressure, falling sharply toweard the $4,000 mark per troy ounce as the US Dollar regains momentum. Escalating US-Iran tensions are keeping inflation concerns and expectations of further Fed rate hikes alive, weighing further on the yellow metal.

Bitcoin eyes 50-day EMA breakout, Ethereum consolidates, XRP steadies

Bitcoin, Ethereum, and Ripple trade near key technical levels on Friday as the broader cryptocurrency market pauses following last week's recovery. BTC is approaching the 50-day Exponential Moving Average while ETH continues to consolidate between two major EMAs.

Warsh needs to restore his reputation

We were glad to see our deeply negative reaction to the Warsh press conference was not some personal peculiarity. Just about everybody in the financial press felt the same way. The consensus is building it’s not the Fed in the dog-house but only Warsh. Today the WSJ changed it tune and blasted Warsh—"the honeymoon is already over..”

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.