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.

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