ChartCreated Using FXCM Marketscope 2.0
Technical Outlook
EURUSD Objectives at 1.2877/88 triggered earlier in the month- Rebound failed at April high
Near-term may see period of consolidation before resumption of broader downtrend
Key Daily Support still at 1.30-handle- Scalp bias bullish above this mark
Break sub 1.30 targets objectives at 1.2877/88 and 1.2750
RSI holding 50 support- Still some upside possible here before encountering trendline resistance
Break above 1.31 (with RSI 60-Breach) targets objectives at 1.32, 1.3274, and 1.3340 (Key)
Key Events Ahead: Fed’s Beige Book, Humphrey-Hawkins Testimony on Wednesday & Thursday
EURUSD Scalp Chart
Scalp Notes: Although our longer-term bias remains weighted to the downside, this key support barrier may offer near-term scalps into resistance levels with a breach above 1.3085 targeting subsequent topside targets. It’s important to note that the RSI signature has been rather bearish since the start of Sunday trade with only a breach above the 60-threshold (with price action north of 1.3085) offering conviction on near-term long scalps. Such a scenario looks for new highs with longs into the monthly high warranted. Break back below 1.30 puts our subsequent support objectives into play. Bottom Line: looking for a break of the weekly opening range (1.2992- 1.3082) to offer further conviction on a near-term directional bias. Longer-term bias remains bearish below 1.3340.
* 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
Bearish Invalidation
Daily / 30min
1.3073/84
23.6% Fib Ext / 50% Retracement
Break Target 1
30min
1.3120
Soft Resistance / Pivot
Break Target 2
Daily / 30min
1.3162
61.8% Fibonacci Retracement
Break Target 3
Daily / 30min
1.3200
Big Figure / July High (1.3205)
Break Target 4
Daily / 30min
1.3235
Soft Resistance / Pivot
Break Target 5
Daily / 30min
1.3274
78.6% Fibonacci Retracement
Bullish Invalidation
Daily / 30min
1.2996- 1.3006
3-Way Fib Confluence
Break Target 1
30min
1.2963
78.6% Fibonacci Extension
Break Target 2
30min
1.2910/20
100% Fib Extension / 23.6% Retrace
Break Target 3
30min
1.2880
Soft Support / Pivot
Break Target 4
30min
1.2850
Soft Support / Pivot
Break Target 5
30min
1.2820
88.6% Retracement
Average True Range
Daily
120
Profit Targets 26-29pips
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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