Technical data of the currency pair:
Previous closing: 1.1241; Daily range: 1.1237-1.1270;
Opening: 1.1241; 52- week range: 1.0538-1.1713;
Annual revenue: +1.05%; Change in % for the previous day: -0.57;

Analytical review:

  • Last month the pair had support and resistance levels of 1.1380 and 1.1145. During Monday’s trading session the currency maintained the upper limit of the trading range (1.1380), and the Euro fell by 100 points;
  • Yesterday, important European statistics was released, which showed that ZEW economic sentiment index in Germany was 19.2 in June against 6.4 in the previous month and the forecast of 4.7%;
  • Euro is under pressure due to the forthcoming referendum, which will be held on 23 June;
  • “Commitments of Traders” shows ambiguous picture. Large investors have reduced the number of long positions by 29836 contracts. Number of short positions have been reduced by 17437 contracts;
  • This week US data on secondary housing market will be released (today) and British referendum will be held on Thursday. This news can affect market volatility and currency movement.

Summary:

  • Despite positive German statistics, during yesterday’s trading session Euro fell by 0.5%. Forthcoming British referendum, ambiguous situation in the world and increased volatility in the financial markets put pressure on the currency. According to “COT” large investors do not have definite opinion about Euro.
  • Market movement is mixed. It is advisable to enter the market from the key support and resistance levels.

Trading tips for the currency pair EUR/USD

Key levels:
Support levels: 1.1240, 1.1190 and 1.1145.
Resistance levels: 1.1300, 1.1345 and 1.1380.

Medium-term trading, Н1
At the moment the currency is at the local support level of 1.1240. If the price maintains demand zone of 1.1240-1.1265 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 1.1340, 1.1375 and 1.1425 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 1.1240-1.1280. It is advisable to enter the market after breaking down and testing of this zone. Positions can be opened at the signal line and the nearest support/resistance level. Take profit can be placed in part of 50%, 30% and 20% with the use of trailing stops.

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




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