EURUSD Technicals Back in Focus- February Opening Range Setup
- EURUSD monthly opening range in focus
- Weekly opening range takes shape above near-term support
- Key Event Risk on Tap
Chart Created Using FXCM Marketscope 2.0
- EURUSD initial monthly opening range remains intact 1.1270-1.1532(highlighted region)
- Break to validate medium-term bias / next leg-
- Range extremes represent bullish/bearish invalidation
- Support-break targets the 2015 LDC at 1.1223/36, the 1.12-handle & 1.1095
- Resistance breach targets 1.1650 & 1.1742
- Note pending daily RSI resistance trigger
- Event Risk Ahead: German Unemployment & US CPI on Thursday and US 4Q GDP on Friday
Notes: The weekly opening range is taking shape just above key near-term support & the monthly ORL low at 1.1263/86(bullish invalidation).Shorts are at risk above this region with a break above the upper MLP (blue) shifting the focus higher into the monthly ORH & key resistance at 1.1532/41 (broader bearish invalidation).
Bottom line: looking higher while above 1.1263 near-term with a break above the upper MLP / weekly opening range high targeting objectives at 1.1430, 1.1491 & the February high at 1.1532/41. A break below the bullish invalidation zone puts the shorts back in control targeting 1.1223/36, 1.1185/99, the hourly reversal close at 1.1140 & the yearly lows at 1.1096. A quarter of the daily ATR yields profit targets of 26-29 pips per scalp. Caution is warranted heading into event risk later this week with German Unemployment & US CPI on tap on Thursday, followed by the second revision on US 4Q GDP on Friday.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Relevant Data Releases
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---Written by Michael Boutros, Currency Strategist with DailyFX
For updates on this scalp and more setups follow him on Twitter @MBForex
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