EURUSD: Waiting for the Dip & Rip- Key Resistance at 1.1400
- EURUSD immediate long-bias vulnerable sub-1.1347
- Updated targets & invalidation levels
Chart Created Using TradingView
Broader Technical Outlook: We’ve been tracking this slope off the lows since the start of the month with the pair reversing off the median-line into the close of last week. The 61.8% retracement of the decline off the yearly high and a basic trendline off the December & March lows further highlights the risk for a near-term pullback while below 1.1347.
Interim support rests with the weekly low at 1.1271 backed by key support & bullish invalidation at 1.1227/31- An area of interest for possible exhaustion / long-entries. A breach of the highs targets subsequent resistance objectives at 1.1396 & the June high at 1.1428.
Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of SuccessfulTraders” series.
Notes: The weekly opening range is taking shape just below last week’s high with momentum starting to hold 60-resistance (near-term bearish). Look for initial support at the weekly open at 1.1307 backed by the low at 1.1271. Remember, ultimately the trend remains higher while above the lower median-line parallel– which coverges on the Fibonacci confluence at 1.1227/31.
Topside resistance targets at 1.1366 and back at the median-line / 1.1400. A third of the daily average true range (ATR) yields profit targets of 24 pips per scalp. Event risk is rather limited from Europe with U.S. Durable Goods Orders, the second revision on 2Q GDP and Fed Chair Janet Yellen’s speech at Jackson. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount.
Help fine-tune you entries, click here to learn more about the DailyFX Grid Sight Index (GSI)
Relevant Data Releases
Other Setups in Play:
- Webinar: Sterling Crosses On the Offensive- Yellen to Steer the Dollar
- USDCAD in Free Fall: 9-Days Down Ahead of Canada CPI, Retail Sales
- AUDJPY into Fresh Monthly Lows Ahead of AU Employment
- NZD/USD Advance Eyes Key Hurdle at 7300 Ahead of Labor Report
- EUR/USD: Respect this Slope Ahead of Upcoming Data- SSI Points Higher
Looking for trade ideas? Review DailyFX’s 2016 3Q Projections
---Written by Michael Boutros, Currency Strategist with DailyFX
Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Desk at 12:30 GMT (8:30ET)
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.