EURUSD Scalp Levels Heading Into ECB, NFP- Longs Favored Above 1.1065
- EURUSD posts 2% rally into initial resistance zone
- Updated targets & invalidation levels heading into ECB / June trade
- Event Riskon TapThisWeek
Chart Created Using FXCM Marketscope 2.0
- EURUSD breaches above ML resistance- Now tracking confluence resistance into 1.12
- Today’s 2% rally marks 2nd largest daily advance since July 1st2010- bullish
- Breach higher targets confluence resistance at 1.1312
- Subsequent topside objectives at 1.1376/90 & 1.1466/74
- Support 1.1065 backed by MLP extending off April low ~1.0920/30 (broader bullish invalidating)
- Daily RSI reversal ahead of 40- close today above 50- constructive
- Key Event Risk Ahead: ECB,US ADP Employment & ISM Non-Manufacturing tomorrow, Eurozone1Q GDP & Non-Farm Payrolls on Friday
Notes:The EURUSD made a break of the weekly opening range high at 1.0992 with the breach taking out a median-line (ML) dating back to the April highs before completing a full 1.618% extension off the lows into 1.1189. Near-term resistance extends into the 1.1218 (bearish invalidation) with a breach above targeting the ML extending off yearly lows & 1.1313/23.
Interim support rests at 1.1130 with our near-term bullish invalidation level set at the highlighted region into 1.1065. A break below this mark shifts the focus back to the short-side targeting 1.0993 & the weekly lows / MLP support.
Bottom line: looking to buy pullbacks / resistance triggers while above 1.1065 with a breach above 1.1218 targeting subsequent resistance objectives. Look for more volatility heading into the close of the week with the ECB interest rate decision & U.S. Non-Farm Payrolls highlighting the economic docket.
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Relevant Data Releases
Other Setups in Play:
- Scalp Webinar: Key Levels on USD Crosses in Focus Ahead of NFP
- USDJPY Breakout Testing Initial Resistance Ahead of U.S. GDP
- AUDUSD Testing Key Support- Short Scalps Vulnerable Above 7680
- USDCAD Scalps Faces 1.25 Key Resistance Ahead of BoC, GDP
---Written by Michael Boutros, Currency Strategist with DailyFX
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