EURUSD: Prefer to sell rallies

Jim Langlands FX Charts

EURUSD: 1.1146

EurUsd has been under pressure as the dollar continues its recovery following the FOMC decision, assisted by today’s firm US data, with the pair finishing the session just above the Thursday lows of 1.1131.

With the 4 hour/daily momentum indicators looking heavy further losses look likely, which could see a decline to 1.1100/10 and possibly to 1.1075 and 1.1015.

On the topside, minor resistance will be seen at 1.1165 and 1.1200 although I don’t think we are heading back up here today. If wrong, look for a move back to the Thursday high of 1.1228.

While the dailies point lower, selling rallies towards 1.1200, with a SL placed above 1.1230 seems to be the plan.

The EU May inflation figure and the US May housing starts and the Michigan Consumer Sentiment Index are data risks for Friday.

24 Hour: Prefer to sell rallies		Medium Term: Mildly Bearish
Resistance		Support
1.1295	14 June high	1.1131	Session low
1.1250	Minor	1.1108	30 May low
1.1223/28	200 HMA /Session high	1.1075	18 May low
1.1200	Minor	1.1067	(23.6% of 1.0340/1.1295)
1.1165	Minor	1.1015	(38.2% of 1.0570/1.1295)

Economic data highlights will include:

EU CPI, US Building Permits, Housing Starts, Michigan Consumer Sentiment Index, Labor Market Conditions Index, Baker Hughes Oil Rig Count

Interested in EURUSD technicals? Check out the key levels

1. R3 1.1302
2. R2 1.1266
3. R1 1.1205
PP 1.1169
1. S1 1.1108
2. S2 1.1072
3. S3 1.1011

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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