2016-06-30 10:43:37

Technical data of the currency pair:

Previous closing: 1.1124; Daily range: 1.1085-1.1128;
Opening: 1.1124; 52- week range: 1.0538-1.1713;
Annual revenue: +1.05%; Change in % for the previous day: +0.51;

Analytical review:

  • European currency has slightly corrected after a significant decline last week (over 400 points). At the moment, key levels of support and resistance are 1.1000 and 1.1175;
  • Yesterday, important US statistics was released which showed that according to the National Association of Realtors, pending home sales in the real estate market decreased by 3.7% (in May) against expectations of decline by 1.1%;
  • The Federal Statistical Office of Germany reported that retail sales in the country increased by 0.9% in May against the forecast of 0.7%;
  • “Commitments of Traders" shows ambiguous picture. Large investors have increased the number of long positions by 3821 contracts. The number of short positions have also increased by 414 contracts
  • Today, unemployment rate of Germany will become known and Consumer price index of EU. This news can affect market volatility and currency movement.

Summary:

  • Positive German statistics, weak statistics of the US real estate market and increased volatility in the financial markets put pressure on the currency. According to “COT” large investors do not have definite opinion about Euro.
  • It is expected that the pair EUR/USD will undergo correction. It is advisable to open long positions.

Trading tips for the currency pair EUR/USD

Key levels:
Support levels: 1.1070 and 1.1000.
Resistance levels: 1.1175 and 1.1240.

Medium-term trading, Н1
At the moment the currency is at the local support level of 1.1070. If the price maintains this level and in case of the respective confirmation (such as Price Action pattern), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 1.1170, 1.1235 and 1.1310 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 1.1085-1.1125. 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 3% of capital. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stops.

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