EURUSD: 1.0904
The Euro was again capped at 1.0950 on Wednesday, allowing the 4 hour charts to turn lower from overbought extremes as the dollar regained some of its recent lost ground. The Euro has traded to a low of 1.0855 ahead of a bounce, to currently sit in the middle of the day’s range at 1.0900.
Good resistance will again arrive at the session high, and the 4 hour charts now suggest that this is likely to remain intact for the coming session. If wrong, a break of 1.0950 would target the 100 WMA, a break of which sees little resistance until 1.1070. On the downside, support will be seen at the session low of 1.0855, and below there at 1.0820. Under here would suggest the chance of a top being in place and the possibility of filling in the chart gap, which could see the Euro head back towards 1.0730 although this remains some way off, and given that the dailies remain positive, buying dips today towards 1.0820 would seem to be the plan. Overall use 1.0820/1.0950 as a guide, with something like a 30 point SL on either side, although the algos are likely to provide for some choppy conditions after the ECB announcement/Press Conference so some caution is warranted. There will also be plenty of US data so it could be quite a busy day.
| 24 Hour: Range Trade | Medium Term: Mildly bullish | ||
| Resistance | Support | ||
| 1.1070 | (76.4% of 1.1300/1.0340) | 1.0875 | Minor |
| 1.1035 | Minor | 1.0861/55 | (23.6% of 1.0570/1.0949)/Session low |
| 1.0990 | 100 WMA | 1.0805 | (38.2% of 1.0570/1.0949) |
| 1.0950 | Session high | 1.0760 | (50% of 1.0570/1.0949) |
| 1.0930 | (61.8% of 1.1300/1.0340) | 1.0730 | Chart Gap |
Economic data highlights will include:
German Consumer Confidence, EU Economic Sentiment Indicator, Industrial Confidence, Services Sentiment, Business Climate, ECB Interest Rate Decision/Press Conference, US Jobless Claims, Durable Goods Orders, Pending Home Sales, Kansas Fed Mfg Activity.
Interested in EURUSD technicals? Check out the key levels
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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
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.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.