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Talking Points

  • EURUSD testing key near-term support confluence- immediate short-bias at risk above
  • Updated targets & invalidation levels
  • Event Risk on Tap This Week

EURUSD Daily

Key EURUSD Levels to Know Ahead of the ECB, US CPI

Chart Created Using FXCM Marketscope 2.0

Technical Outlook

  • EURUSD testing confluence support into 1.0950- shorts at risk near-term above
  • Break below targets key support range at 1.0818/45
  • Resistance at 1.1055/65 backed by 1.1140 (monthly open)
  • Daily RSI holding above 40- constructive
  • Pending momentum resistance trigger in play
  • Event Risk Ahead: ECB tomorrow morning and U.S. Consumer Price Index (CPI) on Friday

EURUSD 30min

Key EURUSD Levels to Know Ahead of the ECB, US CPI

Notes: EURUSD is trading into confluence support ahead of tomorrow’s rate decision with the short-side at risk near-term while above this region. Interim resistance stands at 1.0985 backed by the upper MLP with a breach above 1.1055/65 needed validate a near-term reversal in the pair (bearish invalidation).

A break lower targets the monthly low at 1.0915 backed by 1.0888 and the key 1.0819/45 support zone (check daily). A quarter of the daily average true range yields profit targets of 33-35pips per scalp. Caution is warranted heading into significant event risk later this week with the ECB & US inflation data likely to fuel added volatility in dollar & euro based pairs.

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Relevant Data Releases

Key EURUSD Levels to Know Ahead of the ECB, US CPI

Other Setups in Play:

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  • Webinar: EUR & JPY Struggle Post Greek Deal- Weekly Setups in Focus
  • AUDNZD Pullback at Key Inflection Point- Bearish Sub 1.1250
  • Webinar: Greek Gaps in Focus- Technical Setups in Play this Week
  • Key Levels to Know on USD Majors Heading into NFPs and July Trade

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

Follow Michael on Twitter @MBForex,contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

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