2016-08-26 12:02:29

Technical performance:

Prev. closure: 1.1282; Daily range: 1.1280-1.1307;
Opening: 1.1282; 52-week range: 1.0538-1.1616;
Annual profit: -0.21%; Previous day's change (%): +0.18.

Analytical review:

  • The Euro underwent a slight correction last week (over 100 points) against the USD. The currency pair has been flatting in a range of 1.1245-1.1305 for a few trading sessions.
  • German research firm GFK reported today that the German consumer sentiment index had grown to 10.2 in July, from June’s 10.0. Analysts predicted a value of 9.9;
  • Important statistics on the US economy were released yesterday. According to the US Census Bureau, durable goods orders increased to 1.5% in July, exceeding market expectations of 0.5%;
  • The Commitments of Traders' report registered a majority of short positions with huge market participants. There have been opened 197208 short positions as compared with 91471 long contracts.
  • A news factor is worth attention. US GDP publication and FED Head's statement take place today. These events may affect market volatility.

Summary:

  • Statistical data on the German and US economies put pressure on the EUR/USD's dynamics. COT data prove a considerable majority of short positions with huge market participants.
  • Thus, there is no unidirectional movement in the market. We recommend searching for market entry points from key support and resistance levels.

Trading tips for EUR/USD

Key levels:
Support levels: 1.1270, 1.1245
Resistance levels: 1.1305, 1.1345

Medium-term trading, H1
The currency is currently trading near a resistance level at 1.1305. Once this level is broken and tested and relevant confirming signals appear (Price Action patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 1.1340, 1.1390 and 1.1440, with Trailing Stop applied.

Medium-term trading, H1
Medium-term trading, H1

Short-term trading, M15
The currency is trading at 1.1275-1.1295. We advise you to search for market entry points once this zone is broken and tested. Positions shall be opened in the direction of the signal line and the nearest support/resistance level. Risk per trade: no more than 3% of equity. Stop order shall be placed a bit above/below the signal line. Prospective profits shall be fixed partly, at 50%, 30%, and 20% of a prospective fluctuation, with Trailing Stop applied.

Short-term trading, M15
Short-term trading, M15