Current trend

EUR fell against USD amid weak activity in the US stock market.

Geopolitical tension reduction gave confidence to investors, which also had a favorable effect on the exchange rate of the American currency. However, Donald Trump's comments on OPEC fuelled concerns: the US president called the established prices for oil artificially high.

In the Eurozone, in the absence of significant economic statistics, the weakening was of a technical nature. However, investors are worried about the Brexit talks. It became known that the representatives of the EU rejected all proposals of Great Britain on the Irish border, and the negotiations reached a deadlock. If this issue is not resolved, Britain risks leaving the EU without a deal. Both sides agree that there should not be a physical border between parts of Ireland after Brexit, but they cannot agree on how to control the trade and movement of citizens.

Today, traders should pay attention to the release of data on the number of existing home sales in the US (15:45 GMT+2), Chicago Fed National Activity Index (14:30 GMT+2), and Markit Services PMI (15:45 GMT+2).

Support and resistance

On the H4 chart, the pair is trading near the bottom line of Bollinger Bands, the price range is extended.

MACD histogram is in the negative zone, the signal line is crossing the zero line and the body of the histogram from above, which is a signal to open short positions.

Support levels: 1.2276, 1.2255, 1.2228, 1.2210.

Resistance levels: 1.2305, 1.2328, 1.2348, 1.2370, 1.2400, 1.2420, 1.2450.

Trading tips

Short positions should be opened at the current level with target at 1.2210 and stop-loss at 1.2285.

Long positions may be opened from the level of 1.2310 with target at 1.2370 and stop-loss at 1.2270.

Implementation period: 1-3 days.

Euro vs US Dollar

BuySellSpread
1.13861.1383822

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1.2250
Take Profit1.2210
Stop Loss1.2285
Support levels1.2210, 1.2228, 1.2255, 1.2276, 1.2305, 1.2328, 1.2348, 1.2370, 1.2400, 1.2420, 1.2450

Alternative scenario

RecommendationsBUY STOP
Entry Point1.2310
Take Profit1.2370
Stop Loss1.2270
Support levels1.2210, 1.2228, 1.2255, 1.2276, 1.2305, 1.2328, 1.2348, 1.2370, 1.2400, 1.2420, 1.2450
EUR/USD: general review

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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