EURUSD: Prefer to buy dips

Jim Langlands FX Charts

EURUSD: 1.0797

EurUsd has had a choppy session either side of 1.0800 (1.0775/1.0824), but contained below the 2nd Feb high of 1.0829, leaving the outlook unchanged.

A similar session ahead would not really surprise given the current, slightly negative look of the short term momentum indicators. The dailies look positive though, and a break of 1.0830 could then see a run towards 1.0873 (8 August high) and eventually on to the 200 DMA (1.0900) and possibly higher, towards 1.0935 and eventually to 1.1000. On the downside, as before, minor support will be seen at the session low and then at the various Fibo levels from the move up from the recent 1.0490 low, beginning at 1.0740 and then at 1.0695. As before, given the positive look of the daily charts, it would appear that buying dips is the current plan but I would keep a SL placed below 1.0735, while on the topside, looking for a break of 1.0830, hoping for a run towards 1.0900.

24 Hour: Prefer to buy dips		Medium Term: Prefer to buy dips
Resistance		Support
1.0932	(61.8% of 1.1299/1.0340)	1.0775	Session low
1.0900	200 DMA	1.0745	(23.6% of 1.0494/1.0824)
1.0873	5 Aug high	1.0718	21 Mar low/200 HMA
1.0829	2 Feb	1.0698	(38.2% of 1.0494/1.0824)
1.0824	Session high	1.0660	(50% of 1.0494/1.0824)

Economic data highlights will include:

German Consumer Confidence, EU Economic Bulletin, Targeted LTRO, Janet Yellen Speech, US Jobless Claims, Kansas Fed Mfg Activity, New Home Sales, Fed’s Kashkari Speech EU Provisional Consumer Confidence

Interested in EURUSD technicals? Check out the key levels

1. R3 1.0874
2. R2 1.0850
3. R1 1.0823
PP 1.0799
1. S1 1.0773
2. S2 1.0749
3. S3 1.0722

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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