27 Jan 2015
EUR/USD: There may be more room to the topside - FXCharts
FXStreet (Bali) - According to Jim Langlands, Founder at FXCharts, from a technical standpoint, EUR/USD short term charts are in recovery mode and there may be more room to the topside.
Key Quotes
Technically, the short term charts are in recovery mode and it looks as though there may be more room to the topside. Above the session high of 1.1295 would see the Euro take a look at minor Fibo resistances at 1.1315 and 1.1385, beyond which the 100 HMA lies at 1.1415 and the next Fibo level at 1.1455 (61.8% of 1.1680/1.1097).
Right now the major Fibo level at 1.1227 (61.8% of 0.8225/1.6037) is acting as a pivot, which may continue to be the case, but if we do head back to 1.1200, there is not too much to hold it up above yesterday’s low. Under there, the next obvious target is at 1.1000, where many analysts had previously been looking for a 2015 low, although the next realistic technical level is not seen until the September 2003 low at 1.0759, beyond which we are going to zero-in, eventually, on parity. At risk of sounding like a broken record, I have been saying over the last few months that the charts suggest that we are going to eventually head to 0.8000.
For today, look for a day of 1.1200/1.1350, with a mild bias to the upside, but with direction to be decided by the data, headlined today by the German Retail Sales and then by the US Durable Goods Orders & Consumer Confidence.
Key Quotes
Technically, the short term charts are in recovery mode and it looks as though there may be more room to the topside. Above the session high of 1.1295 would see the Euro take a look at minor Fibo resistances at 1.1315 and 1.1385, beyond which the 100 HMA lies at 1.1415 and the next Fibo level at 1.1455 (61.8% of 1.1680/1.1097).
Right now the major Fibo level at 1.1227 (61.8% of 0.8225/1.6037) is acting as a pivot, which may continue to be the case, but if we do head back to 1.1200, there is not too much to hold it up above yesterday’s low. Under there, the next obvious target is at 1.1000, where many analysts had previously been looking for a 2015 low, although the next realistic technical level is not seen until the September 2003 low at 1.0759, beyond which we are going to zero-in, eventually, on parity. At risk of sounding like a broken record, I have been saying over the last few months that the charts suggest that we are going to eventually head to 0.8000.
For today, look for a day of 1.1200/1.1350, with a mild bias to the upside, but with direction to be decided by the data, headlined today by the German Retail Sales and then by the US Durable Goods Orders & Consumer Confidence.