2016-08-02 11:20:30

Technical data of the currency pair:

Previous closing: 1.1163; Daily range: 1.1159-1.1187;
Opening: 1.1163; 52-week range: 1.0538-1.1713;
Annual revenue: +1.68%; Change in % for the previous day: -0.04.

Analytical review:

  • ​Last week the Euro rose by over 200 points against the USD. Currently, the currency pair has broken out and consolidated above the strong resistance level of 1.1160;
  • Yesterday important US and European statistics was released. According to Markit Economics business activity index in the manufacturing sector of Germany rose from 53.7 to 53.8, which was above the forecast; превысив рыночные ожидания
  • Business activity in the USA fell in July. According to ISM business activity index in the US manufacturing sector was at the level of 52.6 in July against 53.2 in June;
  • “Commitments of Traders" shows ambiguous picture. The number of long positions rose by 11530 contracts. 128306 contracts. Short positions have increased by 12537 contracts;
  • Business activity index in the US non-manufacturing sector will be released on Wednesday and non-farm payrolls will become known on Friday. This news can affect market volatility and currency movement.

Summary:

  • Positive German statistics and poor US macro-economic data support demand for the Euro. According to “COT” large investors do not have general opinion about the Euro.
  • 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 levels: 1.1160, 1.1105 and 1.1015.
Resistance levels: 1.1235 and 1.1350.

Medium-term trading, H4
At the moment the currency has broken up and consolidated above resistance level of 1.1160. If the price maintains the demand zone of 1.1170-1.1195 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 1.1250, 1.1290 and 1.1340 with the use of trailing stops.

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

Short-term trading, М15
At the moment the currency has broken up and consolidated above the local resistance level of 1.1185. If the price maintains the mirrored support level of 1.1185 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 1.1150, 1.1200 and 1.1250 with the use of trailing stops.

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