Technical data of the currency pair:

Previous closing: 1.1141;
Daily range: 1.1135-1.1158;
Opening: 1.1141;
52 - week range: 1.0538-1.1713;
Annual revenue: +1.47%;
Change in % for the previous day: -0.74.

Analytical review:

  • Last week the Euro has dropped by over 150 points against the USD. During yesterday’s session the rally in the USD continued. The currency pair fell by 0.74%;
  • Yesterday, important European statistics was released, which showed that ZEW economic sentiment index in Germany amounted to 6.4 points, which is less than the value in April at the level of 11.2;
  • US Department of Commerce issued data, showing that sales of new homes rose to 619000 from 531000 a month ago and the forecast of 523000;
  • "Commitments of Traders” shows the decline in short positions by 637 contracts to 178775. 211235 contracts have been opened for long positions;
  • News of this week will include IFO in Germany (today) and US GDP (Friday). This data can affect market volatility and movement direction in the pair.

Summary:

  • Weak European statistics, positive 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 short positions;
  • Therefore, it is likely that the Euro will decline against the USD. It is recommended to open short positions.

Trading tips for the currency pair EUR/USD

Key levels:
Support levels: 1.1125 and 1.1060.
Resistance levels: 1.1180 and 1.1235.

Medium-term trading, Н1
At the moment the currency has broken out and consolidated below the local support level of 1.1180. If the price maintains the supply zone and in case of the respective confirmation (such as Price Action pattern), we recommend to open short positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts at the levels of 1.1110, 1.1070 and 1.1010 with the use of trailing stops.

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

Short-term trading, М15
At the moment the currency is traded in the range of 1.1135-1.1155. It is advisable to enter the market after breaking out and testing of this zone. Positions shall be opened towards the signal line and the nearest support/resistance level. Risk per trade is not more than 3% of capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stops.

Short-term trading, М15
Short-term trading, М15




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