Scalping EURUSD Ahead of NFP- Long Bias Favored Above 1.12

Talking Points

• EURUSD eyes critical range- long scalps favored above 1.12
• Updated targets & invalidation levels
• Event Risk on Tap This Week

EURUSD Weekly

EURUSD Daily

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

• EURUSD in consolidation above 100DMA – 1.1145-1.1294 range in focus
• Breach targets August TL resistance ~ 1.1371 and key resistance into 1.1435
• Support at 1.1145 backed by 1.1072 & 1.1020 (bullish invalidation)
• Interim resistance 1.1294 backed by the August TL resistance & 1.1435
• Weekly & Daily RSI support-triggers in view- break would be bearish
• Key Event Risk Ahead: Eurozone Unemployment and CPI & U.S. Non-Farm Payrolls

EURUSD 30min

Notes: EURUSD is trading within the confines of an ascending median-line formation with a sliding parallel off the weekly opening range low catching today’s pullback. The immediate focus remains weighted to the topside while above the monthly open at 1.1208 with resistance objectives eyed at 1.1293 & 1.1324. Subsequent resistance objectives are eyed at 1.1366 & 1.1423/35.

A break back below slope support at the figure puts us neutral with a move sub-1.1145 needed to re-assert the short-bias. Such a scenario risks a steeper decline targeting 1.1104 and the 1.1072/85 support zone. A quarter of the daily average true range (ATR) yields profit targets of 27-29 pips per scalp. Caution is warranted as we head into the latter part of the week with the U.S. Non-Farm Payroll (NFP) report likely to fuel added volatility heading into the September opening range.

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Relevant Data Releases

Other Setups in Play:

• Webinar: USD Fails at Resistance- Scalping Sept. Range Ahead of NFP
• Gold at Critical Resistance- Long Scalps Vulnerable Sub 1155
• GBPJPY Reversal Setup- Short Scalps Eye 182
• USDOLLAR at Support Ahead of Critical Fed Meeting- All Eyes on Yellen
• AUDJPY Approaching Monthly Open- Range Break to Determine Scalp Bias

---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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