#EURUSD: Euro under fire from the dollar. Plenty more to come #fx #forex

By | November 21, 2016

EURUSD: 1.0587
Resistance Support
1.0758 16 Nov high 1.0585 Major rising trend support
1.0740/45 (23.6% of 1.1282/1.0628) /17 Nov high 1.0568 17 Nov low
1.0695 100 HMA 1.0522 3 Dec 2015 low
1.0660 Minor 1.0500 Minor
1.0640 Minor 1.0462 March 2015 low

Bias                                                                                         

The dollar’s strong run higher against all its counterparts continued on Friday, with the Euro under heavy pressure and quickly reaching the rising trend support at 1.0585, before heading on to a low of 1.0569 and then followed by a mild bounce to finish the week at 1.0600. Further Euro weakness looks likely in the sessions ahead and a break of Friday’s low would then head to the Dec 2105 low at 1.0522 and then possibly to the March 2013 low at 1.0461. In the shorter term, with the shorter term indicators again trading at oversold levels we could see a bounce to 1.064/600 and even possibly back to 1.0700/1.0720, above which could then bring about a move towards the 17 Nov high at 1.0745 and even the previous day’s high at 1.0758 although this looks unlikely. Trading from the short side and selling into near term strength, if we see any, with a SL above 1.0745 seems to be the plan.

Further out, this dollar strength looks to me as though it has a long way to go. After almost 2 years of sideways trade, a move towards 1.0000 and possibly a fair bit lower, could be on the cards heading into, and throughout, 2107.

Note the article that I posted last Wednesday on the Dollar Index (DXY), with the attached support/resistance levels, and also not that we are now closing in on a major resistance level at 101.80. http://www.fxchartsdaily.com/the-dxy-is-on-a-roll-and-it-looks-like-it-is-just-beginning-fx-forex-us/

24 Hour: Becoming Oversold -Prefer to sell rallies

Medium Term: Bearish

Economic data highlights will include:

M: EU/US Flash Mfg/Services/Composite PMIs, BuBa Monthly Report, ECB Governor, Mario Draghi Speech, Chicago Fed National Activity Index,

Meta Trader
EURUSD: Daily

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