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The 100 WMA is next in the frame as EURUSD marches higher

The 1.1500 break took a while to take off and now we're here at 1.1600

SocGen's target for shorts is edging closer as we say cheerio to 1.1500.

We got the break after the option expiry blow through sorted that mess out. Support was very tight at 1.1490 which showed the buyers were ready to carry on. The second break then found support around 1.1510 and the next leg took off this morning.

EURUSD weekly

As I mentioned on the post yesterday, the second break would be the clincher to grab a long. The break could be very significant and 1.1500 is going to become a big support level. The 100 wma is the next target at 1.1655 but we may see some mild resistance coming in around the mid-Jan 2015 highs, after the fall through 1.1700. Then we have the China blowout high from last August around 1.1720, further old support, likely turned resistance, at 1.1750, and then we can think about 1.1800.

Close at hand, we're starting to see 1.1600 becoming resistance again with support at 1.1585. 1.1550/60 will be a touch stronger, 1.1540 down to 1.1520 stronger still.

A lot of the moves we're seeing are dollar or yen driven so it's probably wise to bear that in mind. Nothing's fundamentally changed in Europe so there's no reasons, from the EUR side, why it should be stronger. Worries over the Fed and the BOJ are the main game and a switch in sentiment in those two will turn this rally round just as quickly as it's gone up. Trade it for what it is and let the tech levels do the talking.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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