EURUSD: Prefer to sell rallies
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
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.
