EURUSD: Prefer to sell rallies
EURUSD: 1.0668
EurUsd has had a very quiet session (1.0642/1.0680)
The price action on Monday has seen the Euro hold up just ahead of the minor rising trend support, and with the short term momentum indicators now looking a little more supportive it looks as though this will hold for the next few hours at least.
The dailies appear to be pointing increasingly lower though, and if we break below the trend support it could be that we see a test of the 100 DMA at 1.0625, below which would find further bids at 1.0590/1.0600. Further out, Fibo support level lies at 1.0550, below which could see a run towards the March low of 1.0498. On the topside, with the short term momentum indicators looking a little more supportive today, we could see another squeeze back to the session high of 1.0680 and then to Friday’s high of 1.0701. Above there, resistance will be seen at the various Fibo levels, beginning at 1.0743. As before, selling rallies is mildly preferred, with a SL placed above 1.0750 but looking for a run to 1.0625, possibly lower. The coming session may be quiet, while waiting for the more noteworthy action due later in the week, and 1.0625/1.0700 may cover it today.
| 24 Hour: Prefer to sell rallies | Medium Term: Mildly bearish | ||
| Resistance | Support | ||
| 1.0775 | (50% pivot of 1.0906/1.0642) | 1.0642 | Session low /Rising trend support |
| 1.0743 | (38.2% of 1.0906/1.0642) | 1.0625 | 100 DMA |
| 1.0720 | Minor | 1.0600 | Minor |
| 1.0701 | Friday high / (23.6% of 1.0906/1.0642) | 1.0588 | (76.4% of 1.0494/1.1906) |
| 1.0680 | Session high | 1.0555 | (61.8% of 1.0340/1.0906) |
Economic data highlights will include:
T: EU Retail Sales (Feb), US Trade Balance, ISM NY Index, API Weekly Crude Oil Stock Inventory
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.
