EURUSD Surges to Fresh Weekly High on FOMC Leak- Long Scalps Favored
- EURUSD rallies on dovish Fed- scalps eye topside targets
- Updated targets & invalidation levels
- Event Risk on Tap This Week
Chart Created Using FXCM Marketscope 2.0
- EURUSD responds to median-line support- constructive
- Bias remains weighted to the topside above today’s low (1.1017)
- Interim resistance objectives at the August high-day close 1.1153 backed by 1.1195
- Daily RSI rebounds at 50 / former resistance trigger- bullish
- Limited event risk into end of week
Notes: A key median-line support confluence into 1.1017 held into the open of U.S. trade today with the a dovish tone to the FOMC minutes sparking a dollar sell-off that propelled the euro into the weekly opening range high. The broader ascending formation off the lows remains in play with our scalp bias weighted to the topside while within this formation.
Interim support rests at 1.1082 backed by 1.1053 & the lower median-line parallel (bullish invalidation). A breach of the weekly opening range high targets resistance objectives at 1.1153 & the 61.8% retracement at 1.1195. A quarter of the daily average true range (ATR) yields profit targets of 26-28pips per scalp. Bottom line: we’ll be looking to buy pullbacks / resistance triggers while within this formation with a break lower targeting more critical support at 1.0971/86.
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Relevant Data Releases
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---Written by Michael Boutros, Currency Strategist with DailyFX
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.