Review and dynamics
While the UK tries to define its future relationship with the EU, the volatility in the markets continues. The pair EUR/USD has closely approached resistance level of 1.1100 (the lows of September and May), which is crossed by the lower line of the ascending channel on the weekly chart with the upper limit at the level of 1.1785 (Fibonacci 38.2% to the last wave of decline from the highs of 2014, ЕМА144 on the weekly chart).

However, until the divorce proceedings between UK and the EU are not completed, Euro will remain under pressure.

Our opinion
Some important European statistics is scheduled for the release today at 11:00 GMT+2; American statistics will become known from 14:30 to 16:00. This data can become the main fundamental driver today.

Positive European and American statistics will add momentum to the pair UR/USD.

If the pair breaks down the level of 1.1100, the pair EUR/USD can go up in the ascending channel with the nearest target of 1.1200 (ЕМА200, ЕМА144 on the daily chart).

As an alternative scenario the pair can go down in a new descending channel on the daily chart with the lower limit at the level of 1.0915, the lows of June.

Sell positions are advisable after the reversal of the indicators OsMA and Stochastic towards the short positions on 4-hour chart. On the daily, weekly and monthly charts the indicators give signals to sell.

Support levels: 1.1065, 1.1000, 1.0915 and 1.0750.

Resistance levels: 1.1100, 1.1200, 1.1285, 1.1300, 1.1400, 1.1430, 1.1485 and 1.1535.

Trading tips
Sell Stop: 1.1060. Stop-Loss: 1.1110. Targets: 1.1000, 1.0915, 1.0870 and 1.0800.
Buy Stop: 1.1120. Stop-Loss: 1.1080. Targets: 1.1200, 1.1285, 1.1300, 1.1400, 1.1430, 1.1485 and 1.1500.

The pair may return to the ascending channel
The pair may return to the ascending channel

At the level of 1.1100
At the level of 1.1100

Materials published on this page are provided by LiteForex for informational purposes only and should not be construed as investment advice or advice for the purposes of 2004/39/EC Directive. In addition, these materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the further distribution of investment research.

Follow us in social networks!
Live Chat
Leave feedback