2016-07-26 11:20:52

Technical data of the currency pair:

Previous closing: 1.0995; Daily range: 1.0983-1.1020;
Opening: 1.0995; 52-week range: 1.0538-1.1713;
Annual revenue: +0.01%; Change in % for the previous day: +0.23.

Analytical review:

  • ​Since the beginning of July the Euro fell by over 150 points against the USD. During yesterday’s trading session the rally in the USD was stopped at the strong support level of 1.0975;
  • According to the Institute of Economic research Ifo Business Climate index in Germany was at the level of 108.3 against the forecast of 107.5;
  • “Commitments of Traders" shows minor increase in the number of short positions by 342 contracts, up to 22052. 9783 contracts have been concluded for the long positions;
  • Technical analysis shows possibility of the correction in the currency pair. The Euro is at the strong support level of 1.0975. The lower timeframes show the development of the reverse patterns;
  • US Fed interest rate decision will be know on Wednesday; consumer price index in Eurozone will be released on Friday. This news can affect market volatility and currency movement.

Summary:

  • Positive European statistics supports the demand for the Euro. Technical analysis shows possibility of the correction in the pair. According to “COT” large investors have slightly increased the number of short positions.
  • It is expected that the Euro will rise against the USD. It is advisable to open long positions.

Trading tips for the currency pair EUR/USD

Key levels:
Support level: 1.0975
Resistance levels: 1.1020, 1.1085 and 1.1160

Medium-term trading, H4
At the moment the currency is traded at the resistance level of 1.1020. In case of breakout and testing of 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 1.1080, 1.1120 and 1.1155 with the use of trailing stops.

Medium-term trading, H4
Medium-term trading, H4

Short-term trading, М15
At the moment the currency is traded in the range of 1.1005-1.1025. 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. Stop-order can be placed slightly above/below the signal line. 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