A lack of fresh catalyst has meant Euro spent much of the day in consolidation before eventually easing off in late New York trade. For now the lack of big economic data and bank holiday’s in the major markets will likely see us with this cautious tone and technical imperatives driving the market.
Resistance
- 1.08125 – Friday Spike High
- 1.07897 – Triangle Resistance Line
- 1.07572 – Intraday Consolidation Floor
Support
- 1.07342 – Daily Consolidation Resistance
- 1.06909 – Intraday Consolidation Floor
- 1.06673 – Triangle Support Line
We continue to favor the sell side for EURUSD with our combination of proximity to daily level resistances, long wicks in daily charts, and a bearish divergence in oscillators. Note we actually have a marubozu in hourly charts closing under an intraday consolidation floor that scales to a 4H bozu breakout though absent market players we are consolidating just under the breakout point. We would look for a close below the developing consolidation floor as an excuse for jumping short as markets open up. We remain hesitant of taking the buy side absent a catalyst though could be convince to go long with a push above the Triangle Resistance Line in the higher time frames.
