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EURUSD Long Scalps Eye Key Resistance - Breakout Targets 1.18

EURUSD Long Scalps Eye Key Resistance - Breakout Targets 1.18

Talking Points

EURUSD Weekly

EURUSD Daily

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • EURUSD breaches monthly / weekly opening range- rally approaching resistance
  • Key near-term resistance at the median-line / 1.1512 ( 8/25 reversal day close)
  • At risk for pullback heading into 1.15 - Support & Bullish invalidation at 1.1317
  • Breach of the highs targets 1.1614 ( August high-day close) & 1.1688
  • Daily momentum testing 60 resistance- breach keeps trade constructive
  • Key Event Risk Ahead: U.S. Consumer Price Index (CPI) tomorrow and U. of Mich. Confidence on Friday

EURUSD 30min

Notes: A breach of the weekly opening-range shifted the bias higher for the euro with the rally now eyeing a near-term resistance confluence at 1.1464/74. Euro has been trading within the confines of an ascending pitchfork formation off the September lows with the median-line seen just higher. This line intersects the August reversal-day close at 1.1512 into the end of the week and remains a key level of resistance for the pair.

Bottom line: looking for a stretch higher here into resistance which may offer favorable short entries targeting the lower median-line parallel. Interim support & invalidation of the immediate topside bias stands at 1.1395 backed by 1.1342 & 1.1317 (favorable long entries / broader bullish invalidation).

A quarter of the daily average true range (ATR) yields profit targets of 27-29 pips per scalp. Caution is warranted heading into U.S. inflation data tomorrow with the print likely to fuel added volatility in dollar crosses. Consensus estimates are calling for a contraction in the headline reading, but stickiness in core CPI may keep the dollar afloat as the figure is expected to hold steady at an annualized 1.8% for the fourth consecutive month in September.

For updates on this scalp and more setups throughout the week subscribe to SB Trade Desk

Relevant Data Releases

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex,contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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