EURUSD: Possible range trade – Prefer to sell
EURUSD: 1.1180
€/Usd had a choppy session, with the Euro making new trend highs before the dollar bounced, later in the day, to send the pair back below 1.1200, finishing the session at 1.1180.
While the dailies still look constructive, the short term momentum indicators are tipping lower and I suspect that selling rallies may be the name of the game on Wednesday. If so, 1.1200 will see sellers ahead of minor resistance taking us back to the 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, minor support will be seen at 1.1160/65, below which could see a run back towards 1.1100 and then towards 1.1080 and 1.1050.
Selling rallies seems to be the 24 hour plan, but not looking for too much, at least until the FOMC Minutes.
| 24 Hour: Possible range trade – Prefer to sell | Medium Term: Mildly Bullish | ||
| Resistance | Support | ||
| 1.1326 | 8 Sept high | 1.1175 | Minor |
| 1.1300 | 9 Nov high | 1.1165/60 | (23.6% of 1.0838/1.1262)/22 May low |
| 1.1268 | 22 May high | 1.1140 | Minor |
| 1.1230 | Minor | 1.1100 | (38.2% of 1.0838/1.1262) |
| 1.1200 | Minor | 1.1080 | 200 HMA |
Economic data highlights will include:
German Consumer Confidence, ECB Governor, Mario Draghi Speech, US House Price Index, Existing Home Sales, FOMC Minutes, EIA Crude Oil Stocks Weekly Change, Fed’s Kaplan Speech
Interested in EURUSD technicals? Check out the key levels
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.
