EURUSD: Possible range trade

Jim Langlands FX Charts

EURUSD: 1.1218

The Euro held on above the 1.1160 support on Wednesday, and after a mostly quiet session it finally broke back above 1.1200 following the release of the FOMC Minutes, finishing towards the high of 1.1216.

While the dailies still look constructive, the short term momentum indicators are now mixed and I suspect that Thursday may be a choppy but rather directionless session in the absence of much of Europe, who will be on holiday. If so, further upside progress above the session high could take us back to the previous session/trend high of 1.1268. Beyond there, there is little to stop it heading back to 1.1300, and above that, the points to watch are at 1.1365 (18 Aug high), 1.1427 (24 June high) and then at 1.1450 (major descending trend resistance).

On the downside, support will once again be seen at 1.1160/65, although this does not look likely to be tested again today, but below which could see a run back towards 1.1100 and then towards 1.1080 and 1.1050.

A range trade day seems to lie ahead.

24 Hour: Possible range trade		Medium Term: Mildly Bullish
Resistance		Support
1.1326	8 Sept high	1.1200	Pivot
1.1300	9 Nov high	1.1167	Session low
1.1268	22 May high	1.1165/60	(23.6% of 1.0838/1.1262)/22 May low
1.1230	Minor	1.1140	Minor
1.1218	Session high	1.1100	(38.2% of 1.0838/1.1262)

Economic data highlights will include:

EU Ascension Day holiday, OPEC Meeting, Fed’s Bullard Speech, Wholesale Inventories (Apr), Goods Trade Balance, Jobless Claims , Kansas Fed Mfg Activity

Interested in EURUSD technicals? Check out the key levels

1. R3 1.1289
2. R2 1.1255
3. R1 1.1237
PP 1.1203
1. S1 1.1184
2. S2 1.1150
3. S3 1.1132

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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