Talking Points
- EURUSD testing key near-term support confluence- immediate short-bias at risk above
- Updated targets & invalidation levels
- Event Risk on Tap This Week
EURUSD Daily
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
- EURUSD testing confluence support into 1.0950- shorts at risk near-term above
- Break below targets key support range at 1.0818/45
- Resistance at 1.1055/65 backed by 1.1140 (monthly open)
- Daily RSI holding above 40- constructive
- Pending momentum resistance trigger in play
- Event Risk Ahead: ECB tomorrow morning and U.S. Consumer Price Index (CPI) on Friday
EURUSD 30min
Notes: EURUSD is trading into confluence support ahead of tomorrow’s rate decision with the short-side at risk near-term while above this region. Interim resistance stands at 1.0985 backed by the upper MLP with a breach above 1.1055/65 needed validate a near-term reversal in the pair (bearish invalidation).
A break lower targets the monthly low at 1.0915 backed by 1.0888 and the key 1.0819/45 support zone (check daily). A quarter of the daily average true range yields profit targets of 33-35pips per scalp. Caution is warranted heading into significant event risk later this week with the ECB & US inflation data likely to fuel added volatility in dollar & euro based pairs.
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Relevant Data Releases
Other Setups in Play:
- AUDJPY Rebound Faces First Hurdle- Long Scalp Favored Above 91.24
- Webinar: EUR & JPY Struggle Post Greek Deal- Weekly Setups in Focus
- AUDNZD Pullback at Key Inflection Point- Bearish Sub 1.1250
- Webinar: Greek Gaps in Focus- Technical Setups in Play this Week
- Key Levels to Know on USD Majors Heading into NFPs and July Trade
---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michael on Twitter @MBForex,contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list
Join Michael for Live Scalping Webinars on Mondays on DailyFX at 12:30 GMT (8:30ET)
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