EURUSD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
EURUSD Primary and Secondary objectives have now been achieved (1.31-1.3112 & 1.30- 1.3030)
Short exposure closed here ahead of EU event risk tomorrow
RSI now testing the 40-threshold- Trigger Break to offer conviction with move below 1.30
Near-term bias bearish below 1.31
Break (daily close basis) below 1.30 targets medium-term objectives at 1.2877-1.2888
Key Events Ahead: German Unemployment, Eurozone Economic Confidence and the EU Summit
EURUSD Scalp Chart
Scalp Notes: Bottom Line: Although our longer-term bias remains weighted to the downside, this key support barrier may offer near-term scalps into resistance levels. With that said, we will be flat heading into tomorrow data batch out of Europe with price action likely to offer further clarity on an intra-day directional bias. Note that the pair has been trading within the confines of a loosely formed descending channel formation off the June highs with a pending RSI trigger suggesting a topside correction may be at hand as we head into the close of the week. Although our technical bearish invalidation is at 1.31- 1.3112- a topside break out of this formation with RSI conviction may warrant long scalps towards the 1.31-figure in the near-term with medium-term traders likely to use this rally for more favorable short entries.
* It’s extremely important to give added consideration regarding the timing of intra-day scalps with the opening ranges on a session & hourly basis offering further clarity on intra-day biases.
Key Threshold Grid
Entry/Exit Targets
Timeframe
Level
Significance
Resistance Target 1
Daily / 30min
1.3030
61.8% Retracement (May Advance)
Resistance Target 2
Daily / 30min
1.3060/70
Soft Support / 100 & 200DMAs
Bearish Invalidation
Daily / 30min
1.31- 1.3112
38.2%, 50%, 61.8% Fib Confluence
Break Target 1
30min
1.3150
Soft Resistance / Pivot
Break Target 2
Daily / 30min
1.3179
38.2% Retracement (May Advance)
Break Target 3
Daily / 30min
1.3200
Big Figure
Break Target 4
30min
1.3226
50% Retracement (Feb Decline)
Bullish Invalidation
Daily / 30min
1.2985- 1.3000
61.8% Fib Ext / 38.2% Retrace
Break Target 1
30min
1.2945/55
Soft Support / Pivot
Break Target 2
30min
1.2913
23.6% Fibonacci Extension
Break Target 3
30min
1.2885
Soft Support / Pivot
Break Target 4
30min
1.2850
Soft Support / Pivot
Average True Range
Daily
103
Profit Targets 23-25pips
Other Scalp Setups in Play- USDCAD Tags Key Resistance- Scalps Look Lower Sub 1.0540
Reviews today’s Scalp Webinar for further insights and current trade setups
For updates on this scalp and more setups follow him on Twitter @MBForex
—Written by Michael Boutros, Currency Strategist with DailyFX
To contact Michael email mboutros@dailyfx.com or Click Here to be added to his email distribution list
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