EURUSD Daily Chart
Chart Created Using FXCM Marketscope 2.0
Technical Outlook
Euro has now achieved the 100% Fibonacci extension taken from the April rally (1.3293)
Key Resistance Range 1.3290- 1.3340 -Broader bias remains bearish below this mark
Topside breach risks run on 1.35 (78.6% Retracement) and 1.36 (1.618 Extension)
Momentum remains weighted to the topside and as such, we cannot rule out another test of the highs
Interim support 1.3185- Key Support 1.3100- 1.3112
Neatly formed ascending channel formation off April Lows- channel resistance now in key target range
Scalps look cautiously higher, medium-term corrections to be sold below 1.3340
Key Events Ahead- Germany’s constitutional court holds two-day hearing on the OMT program
EURUSD Scalp Chart
Scalp Notes: Bottom Line: Although our longer-term bias remains weighted to the downside, the pair may continue to correct higher in the near-term, offering nimble long-scalps on breaks of resistance and favorable medium-term short entries higher. Intra-day RSI does look constructive since the Sunday open, but as we come into this key technical resistance threshold we may see momentum turn over and offer clear triggers to downside scalps. The break below 1.3185 should get this going, but look out for a possible reaction at key support 1.31- 1.3112 with a break here offering further conviction on our broader directional bias.
*We will remain flexible with our bias with a break above 1.3340 eyeing subsequent resistance targets. 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. Use this app to distinguish the various trade sessions.
Key Threshold Grid
Entry/Exit Targets
Timeframe
Level
Significance
Resistance Target 1
Daily / 30min
1.3293- 1.3305
100% Fib Ext / June High
Bearish Invalidation
Daily
1.3340
61.8% Fib Retracement
Break Target 1
30min
1.3400
Soft Resistance / Pivot / Big Figure
Break Target 2
Daily
1.3450
200-DMA
Break Target 3
30min
1.3503
78.6% Retracement
Break Target 4
Daily
1.3600
1.618% Fib Extension
Support Target 1
Daily / 30min
1.3185
23.6% Retracement / 78.6% Ext
Support Target 2
30min
1.3150
Soft Support / Pivot
Bullish Invalidation
Daily / 30min
1.31- 1.3112
3-Way Fib Confluence
Break Target 1
30min
1.3050
50% Retracement / Pivot
Break Target 2
30min
1.3020
Soft Support / Pivot
Break Target 3
30min
1.2985-1.2990
38.2% Ext / 61.8% Retracement
Break Target 4
30min
1.2945
Soft Support / Pivot
Break Target 5
30min
1.2913
23.6% Fib Retracement
Average True Range
Daily
115
Profit Targets 26-28pips
For updates on this scalp and more setups follow him on Twitter @MBForex
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—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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