EUR/USD Battle Lines Drawn- U.S. GDP to Spur Range-Break?

by DailyFX News
  • Talking Points EURUSD responds to critical support confluence 1.0954/64 Key range-break between 100 & 200 DMAs to validate near-term ...
EUR/USD Battle Lines Drawn- U.S. GDP to Spur Range-Break?
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Talking Points

  • EURUSD responds to critical support confluence 1.0954/64
  • Key range-break between 100 & 200 DMAs to validate near-term directional bias
  • Updated targets & invalidation levels

EURUSD Daily

EUR/USD Battle Lines Drawn- U.S. GDP to Spur Range-Break?

Chart Created Using FXCM Marketscope 2.0

Technical Outlook: EURUSD is rebounding off a key support confluence at 1.0954/64 where the 100-day moving average converges on the 61.8% retracement of the 2016 range and former trendline resistance turned support. Key near-term resistance stands at the confluence of the 61.8% retracement of the 2016 trading range and the 200-day moving average at 1.1045. We’ll be looking for a break of this range with a general long side favored eyeing targets at 1.1120 & 1.1253/63.

Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of Successful Traders” series.

EURUSD 30min

EUR/USD Battle Lines Drawn- U.S. GDP to Spur Range-Break?

Notes: The pair broke above the upper median-line parallel of an embedded pitchfork extending off the monthly highs yesterday with the advance holding just below near-term resistance at 1.1045/55. A breach higher targets the 2/8 low at 1.1085 backed by confluence resistance into 1.1116/20. A breach above this level is needed to validate a more meanigful advance targeting subsequent resistance objectives at 1.1165 & 1.1192.

Interim support rests at 1.10-handle backed by key support & bullish invalidation at 1.0954/64. A break below the December high-day reversal close at 1.0924 is needed to put the broader down-trend back in focus targeting the 2016 open at 1.0872 and the monthly open at 1.0830. A quarter of the daily average true range yields profit targets of 28-31pips per scalp. Caution is warranted heading into the close of the week with the second read on U.S. 4Q GDP

Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount!

Check out SSI to see how retail crowds are positioned as well as open interest heading into February trade.

Relevant Data Releases

EUR/USD Battle Lines Drawn- U.S. GDP to Spur Range-Break?

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or ClickHere to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Deskat 12:30 GMT (8:30ET)


original source

By: Michael Boutros, Currency Strategist


Talking Points

  • EURUSD responds to critical support confluence 1.0954/64
  • Key range-break between 100 & 200 DMAs to validate near-term directional bias
  • Updated targets & invalidation levels

EURUSD Daily

EUR/USD Battle Lines Drawn- U.S. GDP to Spur Range-Break?

Chart Created Using FXCM Marketscope 2.0

Technical Outlook: EURUSD is rebounding off a key support confluence at 1.0954/64 where the 100-day moving average converges on the 61.8% retracement of the 2016 range and former trendline resistance turned support. Key near-term resistance stands at the confluence of the 61.8% retracement of the 2016 trading range and the 200-day moving average at 1.1045. We’ll be looking for a break of this range with a general long side favored eyeing targets at 1.1120 & 1.1253/63.

Avoid the pitfalls of near-term trading strategies by steering clear of classic mistakes. Review these principles in the "Traits of Successful Traders” series.

EURUSD 30min

EUR/USD Battle Lines Drawn- U.S. GDP to Spur Range-Break?

Notes: The pair broke above the upper median-line parallel of an embedded pitchfork extending off the monthly highs yesterday with the advance holding just below near-term resistance at 1.1045/55. A breach higher targets the 2/8 low at 1.1085 backed by confluence resistance into 1.1116/20. A breach above this level is needed to validate a more meanigful advance targeting subsequent resistance objectives at 1.1165 & 1.1192.

Interim support rests at 1.10-handle backed by key support & bullish invalidation at 1.0954/64. A break below the December high-day reversal close at 1.0924 is needed to put the broader down-trend back in focus targeting the 2016 open at 1.0872 and the monthly open at 1.0830. A quarter of the daily average true range yields profit targets of 28-31pips per scalp. Caution is warranted heading into the close of the week with the second read on U.S. 4Q GDP

Continue tracking this setup and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount!

Check out SSI to see how retail crowds are positioned as well as open interest heading into February trade.

Relevant Data Releases

EUR/USD Battle Lines Drawn- U.S. GDP to Spur Range-Break?

Other Setups in Play:

---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or ClickHere to be added to his email distribution list

Join Michael for Live Scalping Webinars on Mondays on DailyFX and Tuesday, Wednesday & Thursday’s on SB Trade Deskat 12:30 GMT (8:30ET)


original source

By: Michael Boutros, Currency Strategist

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