Review and dynamics
Since the opening of today’s trading day the USD continues to decline after nearly three week of growth. However, at the European session, downtrend in the USD, caused by the profit-taking in the long positions has slowed down. At the beginning of the European session the pair EUR/USD has grown to the level of 1.0685. However, it is likely that pair EUR/USD will begin to decline again at the beginning of the American session. EUR/USD remains in the descending channel on the weekly chart with the lower limit near the level of 1.0500. The pair EUR/USD is under strong pressure from the USD and weak macro-economic statistics of Eurozone. On the daily chart the pair EUR/USD is in downtrend.
On the weekly and monthly charts the indicators OsMA and Stochastic give SELL signals, indicating strong downside momentum. On 4 –hour chart the indicators also give signals for the short positions, indicating the end of the upward correction.
The rise in the pair will be possible only after breakout of the level of 1.0710. The pair may go up to resistance levels of 1.0795, 1.0840 (the lows of last month) and 1.0900 (lows after Brexit referendum).
It is recommended to open long positions if the pair goes up to the level of 1.1100 (ЕМА200 on the daily chart, ЕМА50 and the upper line of the descending channel on the weekly chart).
Consolidation above the level of 1.0840 (ЕМА200 on 4-hour chart) may trigger further rise in the pair EUR/USD to the level of 1.1285 (Fibonacci 23.6% after the decline from the highs of 2014).
Pressure on the pair continues.
Short positions are preferable and the rise in the pair can be considered as the upward correction.
Support levels: 1.0600, 1.0580 and 1.0530.
Resistance levels: 1.0710, 1.0795, 1.0840, 1.0900, 1.0975, 1.1050 and 1.1110.
Sell on the market. Stop-Loss: 1.0690. Targets: 1.0600, 1.0550 and 1.0530.
Buy Stop: 1.0695. Stop-Loss: 1.0630. Targets: 1.0710, 1.0795, 1.0840, 1.0900, 1.0975, 1.1050 and 1.1110.
In the descending channel
Indicators give SELL signals