Current trend

The European currency continues to lose ground against the US dollar due to the favorable data on retail sales and industrial production of the United States. At the end of the week, data on the US labor market and construction sector are going to be published. Europe will respond with data on the consumer price index for July.

Support and resistance

At the end of last trading week, the pair overcame the key support level of 1.1500, which was a local minimum since the middle of last year. Next, the pair is expected to move towards the level of 1.1000; at this level one can expect the formation of a long ascending wave. Technical indicators on the daily chart confirm the forecast of the decline to new lows: MACD reflects the growing volume of short positions, and the Bollinger bands are still directed downwards.

Support levels: 1.1330, 1.1300, 1.1250, 1.1200, 1.1115, 1.1000, 1.0970.

Resistance levels: 1.1430, 1.1500, 1.1530, 1.1550, 1.1575, 1.1600, 1.1690, 1.1730.

Trading tips

In this situation, the volumes of short positions can be increased at the current level and the pending sell orders can be placed at 1.1430 with the targets of 1.1200, 1.1000 and stop loss at 1.1460.

Euro vs US Dollar

BuySellSpread
1.17541.1744100

Scenario

TimeframeWeekly
RecommendationsSELL
Entry Point1.1362
Take Profit1.1200, 1.1000
Stop Loss1.1460
Support levels1.0970, 1.1000, 1.1115, 1.1200, 1.1250, 1.1300, 1.1330, 1.1430, 1.1500, 1.1530, 1.1550, 1.1575, 1.1600, 1.1690, 1.1730

Alternative scenario

RecommendationsSELL STOP
Entry Point1.1430
Take Profit1.1200, 1.1000
Stop Loss1.1460
Support levels1.0970, 1.1000, 1.1115, 1.1200, 1.1250, 1.1300, 1.1330, 1.1430, 1.1500, 1.1530, 1.1550, 1.1575, 1.1600, 1.1690, 1.1730
EUR/USD: towards new lows

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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