Technical data of the currency pair:
Previous closing: 1.1534;
Daily range: 1.1448-1.1565;
Opening: 1.1534;
52- week range: 1.0538-1.1713;
Annual revenue: +2.97%;
Change in % for the previous day: +0.54

Analytical review:

  • Last week the Euro has grown by over 300 points against the USD. During yesterday’s session the price of Euro rose by 0.54%;
  • Yesterday, important European statistics was released, which showed that according to research group Markit index of business activity in the manufacturing sector rose to 51.7 against 51.5 a month ago;
  • US Institute for Supply Management (ISM) showed the decline in the business activity index in the manufacturing sector to (PMI) to 50.8 against market expectations of 51.4;
  • “Commitments of Traders” show the decline in long positions by 783 contracts up to 206494. Short positions have been opened for 166582 contracts;
  • Important US statistics will be released this week, which can affect market volatility and currency movement. On Friday, 6 May non-farm payrolls will be known.

Summary:

  • Positive European statistics, weak US macro-economic statistics and increased volatility in the financial markets put strong pressure on the currency pair.
  • According to “СОТ” large investors have slightly reduced the number of long positions.
  • Therefore, it is likely that the Euro will grow against the USD. It is recommended to open long positions.

Trading tips for the currency pair EUR/USD

Key levels:
Support level: 1.1430
Resistance level: 1.1620

Long-term trading, D1
Prior to the release of non-farm payrolls on Friday 6 May, changes in the movement of the European currency are not expected. At the moment it is recommended to refrain long-term transactions in the pair EUR/USD. It is advisable to enter the market after the release of statistics on Friday and retesting of the key support and resistance levels and in case of the of the respective confirmation (such as Price Action pattern).

Long-term trading, D1
Long-term trading, D1

Medium-term trading, Н1
At the moment the currency has broken out and consolidated above the local resistance level of 1.1535. If the price maintains and tests the mirrored support level of 1.1535 and in case of the respective confirmation (such as Price Action pattern), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 1.1590, 1.1640 and 1.1690 with the use of trailing stops.

Medium-term trading, Н1
Medium-term trading, Н1




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