EURUSD: Prefer to sell rallies

Jim Langlands FX Charts

EURUSD: 1.1195

The Euro climbed off its early lows of 1.1138, in choppy trade, to finish just under 15 June highs of 1.1201, with the dollar under broad pressure after the release of some soft US housing data, taking some of the steam out of the upbeat outlook from the Fed in the FOMC statement.

With the 4 hour momentum indicators looking a little more supportive, for the coming session, we could see a squeeze above 1.1200 and on towards 1.1230 and possibly to 1.1250.

On the downside, with the daily momentum indicators still looking negative further losses look likely at some stage. Minor support should now arrive at 1.1165, ahead of last week’s lows at just above 1.1130. Beyond there would allow a move to 1.1100/10 and possibly to 1.1075 and 1.1015 although this looks to have been delayed for now.

While the dailies point lower, selling rallies towards 1.1220, with a SL placed above 1.1255 seems to be the plan although with little data due today it may be a fairly quiet session.

24 Hour: Prefer to sell rallies		Medium Term: Mildly Bearish
Resistance		Support
1.1295/1.1300	14 June high /9 Nov high	1.1065	Minor
1.1255	(76.4% pivot of 1.1295/1.1131)	1.1138/31	Friday low /15 June low
1.1232	(61.8% pivot of 1.1295/1.1131)	1.1108	30 May low
1.1215	200 HMA	1.1075	18 May low
1.1201	Friday high	1.1067	(23.6% of 1.0340/1.1295)

Economic data highlights will include:

M: BuBa Monthly Report, EU Construction Output, Fed’s Dudley Speech

T: EU Current Account (May), German PPI, US Current Account (Q1), Fed Monetary Policy Report, API Weekly Crude Oil Stock Inventory

W: ECB Non-Monetary Policy Meeting, US Existing Home Sales, EIA Crude Oil Stocks Weekly Change

T: EU Economic Bulletin, US Jobless Claims, House Price Index, Kansas Fed Mfg Activity, EU Consumer Confidence

F: EU/US Markit Flash Manufacturing/Services/Composite PMIs, US New Home Sales, Baker Hughes Oil Rig Count

Interested in EURUSD technicals? Check out the key levels

1. R3 1.1226
2. R2 1.1218
3. R1 1.1211
PP 1.1203
1. S1 1.1197
2. S2 1.1189
3. S3 1.1182

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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