Current trend

On Tuesday, the EUR/USD pair reached the 6-week lows. USD is supported by the growth in yield of 10-year US government bonds to 7-year highs at 3.25%. In view of this, the US dollar index rose by 0.40% to 96.13 points. Tuesday’s data on Germany’s Trade Balance indicated a surplus growth to 18.3 billion EUR in August from 15.9 billion a month earlier but did not support the instrument significantly.

Today, the key issue for the pair will be the publication of the US Producer Price Index at 14:30 (GMT+2), which estimates the average change in wholesale prices determined by manufacturers at all stages of production. The growth rate may have a positive impact on USD.

Support and resistance

On the 4-hour chart, the instrument was corrected to the middle line of Bollinger bands. MACD histogram is in the negative region, keeping the signal to open short positions.

Resistance levels: 1.1515, 1.1550, 1.1595, 1.1630.

Support levels: 1.1462, 1.1433, 1.1400, 1.1375.

Trading tips

Short positions can be opened from the current level with the target at 1.1440 and stop loss 1.1520.

Long positions can be opened from the level of 1.1550 with the target at 1.1600 and stop loss 1.1520.

Implementation period: 1–3 days.

Euro vs US Dollar

BuySellSpread
1.142271.14123104

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point1.1490
Take Profit1.1440
Stop Loss1.1520
Support levels1.1375, 1.1400, 1.1433, 1.1462, 1.1515, 1.1550, 1.1595, 1.1630

Alternative scenario

RecommendationsBUY STOP
Entry Point1.1550
Take Profit1.1600
Stop Loss1.1520
Support levels1.1375, 1.1400, 1.1433, 1.1462, 1.1515, 1.1550, 1.1595, 1.1630
EUR/USD: general analysis

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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