EURUSD: Prefer to sell rallies

Jim Langlands FX Charts

EURUSD: 1.0921

Having gapped higher on the back of the French election result, the Euro is now back at just above session lows of 1.0915, and with the momentum indicators looking rather mixed it would appear that we may have some choppy consolidation ahead of us.

On the topside, resistance will be seen on an approach towards 1.1000 and at the high of 1.1020, although with the short term momentum indicators looking rather negative I would doubt that we head back above 1.1000 in the coming session. If wrong, a break of 1.1020 would see little resistance until the channel top at 1.1055 and then the Fibo level at 1.1070, and beyond that there is little to stop the Euro heading on to the 9 November spike high at 1.1300.

On the downside, if we head back below the session low and then see a break of 1.0900, minor support will be seen at the 4 May low of 1.0875, and stronger support seen at 1.0835 and 1.0820. Below here would see a move to close the chart gap from the 1st round of the French election, taking us back towards 1.0730 although that remains some way off.

Cautiously trading from the short side appears the way to go given that the dailies have formed a bearish engulfing candle although there is little data today to cause too much volatility. A strong reading from the US Wholesale Inventories would emphasize the chances of a June Fed rate hike, which may then underpin the dollar.

24 Hour: Prefer to sell rallies		Medium Term: Neutral
Resistance		Support
1.1070	(76.4% of 1.1300/1.0340) /Weekly cloud base	1.0913/15	(23.6% of 1.0570/1.1020) Session low
1.1055	Channel top	1.0900	Minor
1.1020	Session high	1.0875	4 May low
1.1000	Psychological	1.0851	26 Apr low
1.0950	Minor	1.0820	24 Apr low

Economic data highlights will include:

German Industrial Production, Trade Balance, US NFIB Business Optimism Index, Wholesale Inventories

Interested in EURUSD technicals? Check out the key levels

1. R3 1.1068
2. R2 1.1046
3. R1 1.1007
PP 1.0985
1. S1 1.0946
2. S2 1.0924
3. S3 1.0885

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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