2016-07-08 13:35:37

Review and dynamics

In anticipation of the data on the US labor market for June, which can change movement direction in the USD in the short term, trading activity in the financial markets is gradually declining. Despite the collapse of the financial markets, which followed after the announcement of the outcome of the UK referendum, the pair EUR/USD managed to go to the resistance level of 1.1200 (ЕМА200, ЕМА144 on the daily chart, ЕМА50 on the weekly chart). The Euro and EUR/USD continue to remain under pressure caused by the UK referendum. Instability, prevailing in the financial markets due to Brexit, forces investors to invest into safer assets, such as the yen, gold.

Our opinion

On the daily, 4 hour and weekly charts the indicators OsMA and Stochastic give sell signals, while the indicators on the monthly chart are reversing towards the short positions. On the weekly chart the pair EUR/USD remains in the upward channel with the lower limit crossing the level of 1.0915, while the upper limit is close to the level of 1.1785 (Fibonacci 38.2% to the last wave of decline from the highs of 2014, ЕМА144 on the weekly chart).

Traders shall be careful today, as after the release of the US NFPR at 14:30 (GMT+2), market volatility may be very high.

On the daily chart the pair is in the descending channel with a lower limit at the level of 1.0800.

The positive data on the US labor market will strengthen the USD in the currency market. The nearest targets of the decline in pair EUR/USD can be the levels of 1.1025, 1.0970, 1.0915 and 1.0865.

Otherwise, the pair EUR/USD will grow up to the level of 1.1200. It is unlikely that the pair will go further up. Euro will remain under pressure until the completion of the separation process between the UK and the EU, and until ECB works out a plan for the least painful way out of the situation.

Support levels: 1.1025, 1.1000, 1.0970, 1.0915, 1.0865, 1.0800 and 1.0750.
Resistance levels: 1.1100, 1.1200, 1.1285, 1.1300, 1.1400, 1.1430, 1.1485 and 1.1535.

Trading tips

Sell on the market. Stop-Loss: 1.1110. Targets: 1.1025, 1.1000, 1.0970, 1.0915, 1.0865 and 1.0800.
Buy Stop: 1.1130. Stop-Loss: 1.1090. Targets: 1.1150, 1.1200, 1.1285, 1.1300, 1.1400, 1.1430, 1.1485 and 1.1500.

In the ascending channel
In the ascending channel

Below the level of 1.1200
Below the level of 1.1200