EURUSD: Prefer to sell rallies

Jim Langlands FX Charts

EURUSD: 1.1766

Preferred Strategy: The Euro has bounced from its lows and in the short term we could see a squeeze back towards 1.1800 although the 4 hour charts remain heavy and any near term rally would seem to be a sell opportunity for another move to the 1.1735 lows, and then possibly to test 1.1700 and the mid August lows at 1.1660. The dailies look neutral and in the absence of any major data it may be a tight session although there are plenty of CB speakers coming up. Note the larger Head/Shoulders formation that appears to be building: if so, target 1.1235.

Sell EurUsd @ 1.1800. SL @ 1.1855, TP @ 1.1700

24 Hour: Prefer to sell rallies		Medium Term: Mildly Bearish
Resistance		Support
1.1879/82	12 Oct high/(50% of 1.2092/1.1669)	1.1750	Minor
1.1874/70	14 Oct high/Neckline resistance	1.1735	Session low
1.1840	Minor	1.1720	(76.4% of 1.1668/1.1880)
1.1819	16 Oct high	1.1700	Minor
1.1799	Session high	1.1661	17 Aug low

Economic data highlights will include:

Extraordinary EU Economic Summit, EU Construction Output, US Building Permits, Housing Starts, Beige Book ,EIA Crude Oil Stocks Weekly Change. Speeches; Draghi, Angeloni/Praet/Coeure (ECB) and Kaplan/Dudley (Fed).

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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