EURUSD: Prefer to sell rallies

Jim Langlands FX Charts

EURUSD: 1.0875

The dollar is firm at the end of Tuesday trade while the Euro remains under pressure following Monday’s spike higher after the French election result, and the pair is finishing near the day’s lows of 1.0862.

The momentum indicators now suggest that we are going to see further downside pressure in the days ahead, with both the 4 hour/daily momentum indicators both looking slightly negative. If so, once back below 1.0850, the 200 DMA will provide some support although below there would potentially allow the chart gap to close, which would take the Euro all the way back to 1.0730. On the topside, resistance will be seen at 1.0900 and then at the session high of 1.0932 although I am not sure that we see it up here again today. If wrong, we could then see a move back towards 1.1000 and Monday’s high of 1.1020, a break of which would see little resistance until the channel top at 1.1055 and then the Fibo level at 1.1070.

24 Hour: Prefer to sell rallies		Medium Term: Prefer to sell rallies
Resistance		Support
1.1020	8 May high	1.0862	Session low
1.1000	Psychological	1.0851	(38.2% of 1.0570/1.1020) /26 Apr low
1.0950	Minor	1.0825/20	200 DMA /24 Apr low
1.0932	Session high	1.0795	(50% of 1.0570/1.1020)
1.0900	Minor	1.0740	(61.8% of 1.0570/1.1020)

Economic data highlights will include:

ECB Governor, Mario Draghi Speech, US Import/Export Index, Monthly Budget Statement

Interested in EURUSD technicals? Check out the key levels

1. R3 1.0989
2. R2 1.0961
3. R1 1.0918
PP 1.0890
1. S1 1.0847
2. S2 1.0819
3. S3 1.0776

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.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold jumps above $5,000 as China's gold buying drives demand

Gold price rises to near $5,035 during the early Asian session on Monday. The precious metal extends its recovery amid a weaker US Dollar and rising demand from central banks. The delayed release of the US employment report for January will be in the spotlight later on Wednesday.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.