2016-07-20 10:51:47

Technical data of the currency pair:

Previous closing: 1.1021; Daily range: 1.0998-1.1022;
Opening: 1.1021;
52- week range: 1.0538-1.1713;
Annual revenue: +1.73%;
Change in % for the previous day: -0.47.

Analytical review:

  • Over the past few sessions European currency fell by 100 points. During yesterday’s session rally in the USD continued. The currency pair fell by 0.47%;
  • Important European statistics released yesterday showed that ZEW economic sentiment index in German was -6.8 in July against +19.2 in June;
  • US Census Bureau reported that in June, the number of permits to construct rose up to 1.153M against 1.136M a month earlier and the forecast of 1.150M;
  • “Commitments of Traders” shows ambiguous picture. Large investors have decreased the number of long positions by 201 contracts. The number of short positions have also dropped by 14755 contracts;
  • Interest rate decision by ECB will be known on Thursday and Fed Philadelphia index of manufacturing activity will be also released on Thursday. This news can affect market volatility and currency movement.

Summary:

  • Poor German statistics, positive US statistics and high volatility in the financial markets put pressure on the currency. According to “COT” large investors do not have common opinion about the Euro;
  • It is expected that the Euro will fall against the USD in the near future. It is advisable to open short positions.

Trading tips for the currency pair EUR/USD

Key levels:
Support level: 1.0975.
Resistance levels: 1.1000 and 1.1035.

Medium-term trading, Н1
At the moment the currency has exceeded support level of 1.1000. If the price maintains the mirrored resistance level of 1.1000 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, 1.0910 and 1.0850 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 at the demand zone of 1.0995-1.1005. If the price maintains this zone 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 3% of capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 1.0960, 1.0930 and 1.0890 with the use of trailing stops.

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