EUR/USD

Technical data of the currency pair:

Daily range: 1.0968-1.1012;
Opening: 1.1010;
52- week range: 1.0456-1.1713;
Annual revenue: +1.33%;
Change in % for the previous day: -0.13.


Analytical review:

  • Since the beginning of the month Euro has strengthened positions against the USD (over 200 points). In the past three sessions the currency pair has traded in the range of 1.0940-1.1040.
  • Yesterday, important European statistics was released, which showed that industrial production of Germany rose by 3.3%. Analysts expected that the index would be at the level of 0.5%. GDP in Eurozone increased by 1.6% in Q4. 2015, which was above the forecast of 1.5%.
  • Euro is under pressure from expectations that ECB will lower rates on deposits and extend buyout program for 6 months.
  • “Commitments of Traders” shows decline in short positions by 27696 contracts. Long positions were opened for 291418 contracts; short positions for 212752 contracts.
  • On Thursday this week a meeting of ECB will be held. A meeting will consider probability of further monetary policy easing.

Summary:

  • Despite positive data on European economy Euro has lost 0.13% during yesterday’s session. Increased market volatility, ambiguous US macro-economic statistics and uncertainty in European monetary policy put pressure on the currency pair. According to “COT” large speculators have reduced short positions.
  • Market demonstrates mixed trading. Decision by ECB might have impact on the market. We recommend to enter the market from the key support and resistance levels.

Trading tips for the currency pair EUR/USD

Medium-term trading:
At the moment the currency is traded in the range of 1.0960-1.1040. We recommend to enter the market after breaking down and testing the levels of 1.0940-1.0960; 1.1040-1.1065. It is advisable to open positions near the signal line, and the nearest support/resistance levels. Risk per trade is not more than 2% of capital. Stop-order can be placed slightly above/below the signal line. Take profit should be placed in parts of по 50%, 30% and 20% with the use of trailing stop.


Analytical review of the currency pair EUR/USD

Short-term trading: on the chart with the timeframe 15M the currency has broken down and consolidated below the local support level of 1.0995. In case of maintenance and testing of resistance levels of 1.0995-1.1010 we recommend to open short positions. Risk per trade is not more than 3% of the capital. Stop order can be placed at the level of 1.1015. Take profit can be placed in parts of 1.0965, 1.0940 and 1.0915 with the use of trailing stop.


Analytical review of the currency pair EUR/USD




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