2016-06-27 12:17:30

Technical data of the currency pair:

Previous closing: 1.1117; Daily range: 1.0984-1.1075;
Opening: 1.1010; 52- week range: 1.0538-1.1713;
Annual revenue: +1.05%; Change in % for the previous day: -2.38;

Analytical review:

  • Last week, the Euro significantly fell against the USD (over 400 points). During trading session last Friday, the pair fell by over 2%. Currently, local support and resistance levels are 1.0945 and 1.1145 respectively;
  • On Thursday, 23 June Great Britain voted for the exit from the EU, which caused high volatility in the financial market. This decision caused significant decline in the Euro against the USD. Investors are anxious that Bretix can provoke the exit of some other EU members from the Union;
  • Markets’ expectations of the interest rate in the USA have dropped, increasing uncertainty of the future monetary policies of the major Central Banks of the world. At the moment, demand for the safe-haven assets, such as gold and the Yen are increasing;
  • “Commitments of Traders” shows ambiguous picture. Large investors have increased the number of long positions by 3821 contracts. The number of short positions have dropped by 414 contracts;
  • The news of this week will include: US GDP (Tuesday) and German unemployment rate (Thursday). This news can affect market volatility and currency movement.

Summary:

  • UK’s decision to leave the EU, ambiguous economic situation and monetary policies of major Central Banks and increased volatility in the financial markets put strong pressure on the currency.
  • According to “COT” large investors do not have definite opinion about the Euro.
  • It is expected that the Euro will continue to fall against the USD. It is advisable to open short positions.

Trading tips for the currency pair EUR/USD

Key levels:
Support levels: 1.1035 and 1.0945.
Resistance levels: 1.1145, 1.1190.

Medium-term trading, Н1
At the moment the currency is traded at the local support level of 1.1035. After breaking down and testing of this level and in case of the respective confirmation (such as Price Action pattern), we recommend to open short positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 1.0950, 1.0880 and 1.0825 with the use of trailing stops.

Medium-term trading, Н1
Medium-term trading, Н1

Short-term trading, М15
At the moment the currency is traded in the range of 1.0995-1.1070. It is advisable to enter the market after breaking down and testing of this zone. Positions can be opened at the signal line and the nearest support/resistance level. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in part of 50%, 30% and 20% with the use of trailing stops.

Short-term trading, М15
Short-term trading, М15