EUR/USD scope for buying but we look for rallies to be sold
At lunchtime today we have the US inflation data, consumer price index (CPI). This will be the driving force today.
DXY (USD Index) - we have seen mixed and volatile trading for the last six sessions with spikes in both directions. The intraday chart suggests this lack of clear direction is continuing this week. Bespoke support is located at 104.97. With this being close to the projected AB leg of a Bat formation, I am looking for dips to be bought. It should be noted the anticipated rally could be limited to bespoke resistance at 105.52.
EUR/USD - mixed and volatile trading has resulted in an Expanding Wedge. Trend line resistance is located at 1.0787. Trend line support is located at 1.0546. Although this pattern has an eventual bias to break to the downside, there is ample scope to move higher before sellers return.
Bespoke resistance is located at 1.0734 and 1.0746. The AB leg of a Butterfly formation is located at 1.0734. It should be noted that the projected completion of this formation is located at 1.0782, close to the trend line resistance of 1.0787 from the Expanding Wedge pattern. This confluence level (1.0782-1.0787) is our medium-term barrier.
Conclusion: Although the immediate outlook is mildly bullish, I am looking for 1.0734 to cap buying interest. I am looking for a drive lower to bespoke support located at 1.0662. Expect trading to remain mixed and volatile.
Resistance: 1.0734 (bespoke and AB), 1.0756 (swing high), 1.0782 (Butterfly)
Support: 1.0662 (bespoke), 1.0656 (swing low), 1.0546 (higher lows)
DXY (USD Index) - we have seen mixed and volatile trading for the last six sessions with spikes in both directions. The intraday chart suggests this lack of clear direction is continuing this week. Bespoke support is located at 104.97. With this being close to the projected AB leg of a Bat formation, I am looking for dips to be bought. It should be noted the anticipated rally could be limited to bespoke resistance at 105.52.
EUR/USD - mixed and volatile trading has resulted in an Expanding Wedge. Trend line resistance is located at 1.0787. Trend line support is located at 1.0546. Although this pattern has an eventual bias to break to the downside, there is ample scope to move higher before sellers return.
Bespoke resistance is located at 1.0734 and 1.0746. The AB leg of a Butterfly formation is located at 1.0734. It should be noted that the projected completion of this formation is located at 1.0782, close to the trend line resistance of 1.0787 from the Expanding Wedge pattern. This confluence level (1.0782-1.0787) is our medium-term barrier.
Conclusion: Although the immediate outlook is mildly bullish, I am looking for 1.0734 to cap buying interest. I am looking for a drive lower to bespoke support located at 1.0662. Expect trading to remain mixed and volatile.
Resistance: 1.0734 (bespoke and AB), 1.0756 (swing high), 1.0782 (Butterfly)
Support: 1.0662 (bespoke), 1.0656 (swing low), 1.0546 (higher lows)