Euro could continue to head a bit higher today - FX Charts

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Łódź) - Jim Langlands from FX Charts notes that the Euro is a little higher despite the mildly more hawkish tone from the FOMC Minutes at which the Fed announced that tapering is likely to finish in October if the economy continues on its current trajectory of ongoing jobs growth and low inflation.

Key quotes

"Technically the short term charts appear to suggest that the Euro could continue to head a bit higher, and given the overwhelmingly bearish view, a short squeeze would not really surprise."

"If it can take out minor Fibo resistance at 1.3650 (61.8% of 1.3700/1.3573) it could then head on to 1.3670 (76.4%/ daily cloud base/200 DMA)."

"Further out, the Euro would find sellers at 1.3700, a break which would see a run up towards 1.3730(100 DMA), which should be solid resistance although a break of this level would head on towards 1.3803 (61.8%)."

"Back to the downside, which looks a little less likely today, bids will be once again seen at 1.3600 (daily Kijun)."

"Below there would suggest a retest of the minor double bottom at around 1.3575 (Thursday low 1.3573)."

"Beyond there would head towards 1.3557 (76.4%) a break of which would head to the greater degree of Fibo support at 1.3518 (38.2% of 1.2754/1.3995) but which looks unlikely to be seen today."

"Given that there is not too much data out today, the Euro may end up close to current levels, but I do suspect that we are going to squeeze a little higher at some stage and for today would use 1.3620/70 as a guide."

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