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6 May 2015
EUR/USD: Risk remains for further upside - FXCharts
FXStreet (Bali) - According to Jim Langlands, Founder at FXCharts, the daily and hourly charts in EUR/USD both point higher, thus concluding that another test of the topside does seem likely.
Key Quotes
"The daily and hourly charts both point higher, so another test of the topside does seem likely although the 4 hour charts look less certain and it may be that the market chops around without any real direction until the NFP on Friday."
"On the topside, we now have a short term double top at 1.1222, which will act as decent resistance. Back above here would take the Euro back towards Friday’s trend high at 1.1290, which is also strong Fibo resistance (23.6% of 1.3993/1.0461)."
"Whether that is the top of the current squeeze or not remains to be seen, but 1.1290 would again be very strong resistance, if seen, above which the Euro would encounter further sellers at the 100 DMA at 1.1300, and will not be an easy area to overcome."
"The downside will see minor support at the 100 HMA at 1.1170, below which the Euro could head back to 1.1100 although this looks less likely. Below 1.1100 would head towards the session low at 1.1065, beneath which there would not be too much to hold it ahead of 1.1030 (200 HMA) and then 1.1000 (38.2% of 1.0520/1.1290)."
Key Quotes
"The daily and hourly charts both point higher, so another test of the topside does seem likely although the 4 hour charts look less certain and it may be that the market chops around without any real direction until the NFP on Friday."
"On the topside, we now have a short term double top at 1.1222, which will act as decent resistance. Back above here would take the Euro back towards Friday’s trend high at 1.1290, which is also strong Fibo resistance (23.6% of 1.3993/1.0461)."
"Whether that is the top of the current squeeze or not remains to be seen, but 1.1290 would again be very strong resistance, if seen, above which the Euro would encounter further sellers at the 100 DMA at 1.1300, and will not be an easy area to overcome."
"The downside will see minor support at the 100 HMA at 1.1170, below which the Euro could head back to 1.1100 although this looks less likely. Below 1.1100 would head towards the session low at 1.1065, beneath which there would not be too much to hold it ahead of 1.1030 (200 HMA) and then 1.1000 (38.2% of 1.0520/1.1290)."