EurUsd saw a brief spike to 1.2295 on Friday

Jim Langlands FX Charts

EURUSD: 1.2218

EurUsd saw a brief spike to 1.2295 on Friday but then slid steadily lower, with the dollar making slow but steady gains, seemingly unworried by the prospect of a US Government shutdown. The pair finished on their lows but well above the week’s low of 1.2165.

1 hour/4 hour indicators: Turning lower Daily Indicators: Up Weekly Indicators: Turning higher

Preferred Strategy: A neutral stance seems wise at the start of the week with the momentum indicators showing little change from Friday. The short term momentum indicators are pointing a little lower, so a retest of 1.2200/1.2170 would not surprise, but with the dailies still looking positive, a return to the trend high should not be discounted either.

NB. The Euro is opening inter-bank trade on Monday at 1.2265. A cautious stance is required.

Buy EurUsd @ 1.2170. SL @ 1.2280, TP @ 1.2135

Resistance		Support
1.2335	Minor	1.2218	Friday low
1.2322	17 Jan high	1.2165	17 Jan low
1.2295	Friday low	1.2140	23.6% of 1.1553/1.2295/200 HMA
1.2275	H/S Neckline	1.2120	Minor
1.2260	Minor	1.2100	Minor

Economic data highlights will include:

M: German BuBa Monthly Report, Chicago Fed National Activity Index

T: German/EU ZEW Economic Sentiment Survey, EU Preliminary Consumer Confidence (Jan), Richmond Fed Mfg Index, World Economic Forum- Davos

W: Eurogroup Meeting, EU/US Flash Manufacturing/Services/Composite PMIs, US Existing Home Sales, EIA Crude Oil Stocks Weekly Change

T: EcoFin Meeting, German IFO Business Climate/Expectations, ECB Interest Rate Decision, Monetary Policy Statement, US Jobless Claims, Wholesale Inventories, New Home Sales, Kansas Fed Mfg Activity, World Economic Forum- Davos.

Interested in EURUSD technicals? Check out the key levels

1. R3 1.2349
2. R2 1.2323
3. R1 1.2272
PP 1.2245
1. S1 1.2194
2. S2 1.2167
3. S3 1.2117

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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