EURUSD: 1.1596
Preferred Strategy: EurUsd has had another tight session hugging 1.1600 and it could be the same again today although the China Oct inflation data could impact risk sentiment in Asia, while Trump headlines from China might create some waves. Otherwise there is little to drive markets again for the coming session.
In the short term, the momentum indicators are flat and offer little hint in either direction although the 4 hour charts may be pointing to slightly higher levels and a run towards 1.1630 would not really surprise.
On the downside, support will be seen at and 1.1358 and at 1.1550 and then again at 1.1500/10 below which there is little support until 1.1475/80.
As before, as long as the Euro should hold below 1.1675 on a daily-close basis, with the eventual target being at around 1.1250, pretty much in line with the 200 DMA and if we do see a daily close below 1.1570 at any stage we may begin to see an acceleration to the downside, to where 1.1510 will be the next support.
A topside break of 1.1675 would trigger stops and could see a run back to 1.1700 where the 100 DMA will provide stern resistance, but above there could see a bigger squeeze towards 1.18000. At this stage this looks doubtful. As long as we don’t see a daily close above 1.1700, I prefer to trade from the short side.
Sell EurUsd @ 1.1670 & @ 1.1700. SL @ 1.1730, TP @ 1.1500.
| 24 Hour: Prefer to sell rallies | Medium Term: Mildly Bearish | ||
| FX Charts Position: | Short – Looking to add to the position into strength | ||
| Resistance | Support | ||
| 1.1686/90 | 3 Nov high /(38.2% of 1.1879/1.1574) | 1.1578 | Session low/Rising trend support |
| 1.1675 | H.S. Neckline | 1.1553 | 7 Nov low |
| 1.1623/30 | 6 Nov high (23.6% of 1.1879/1.1653) | 1.1525 | Minor |
| 1.1615 | 7 Nov high | 1.1510 | Rising trend support/(38.2% of 1.0570/1.2091) |
| 1.1610 | Session high | 1.1478 | 20 July low |
Economic data highlights will include:
German Current Account, Trade Balance, EU Economic Bulletin/Growth Forecasts, US Wholesale Inventories, Jobless Claims
All content on this website, www.fxcharts.com.au (FX Charts PL) is a personal view only and offers absolutely no guarantee as to the correctness or otherwise of that opinion. The content here is of a “general nature” only and does not constitute personal or investment advice. The FX Charts website is not an inducement to trade Foreign Exchange (FX). No liability whatsoever is accepted for any loss or damage that may result, directly or indirectly, from any , comment, opinion, information or omission, whether negligent or otherwise, within the FX Charts Website. The information and any opinion or outlook expressed in this commentary may be based on assumptions or market conditions and may be liable change at any time, without notice.
Recommended Content
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.