EUR/USD: towards new lows
16 August 2018, 14:04
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL |
| Entry Point | 1.1362 |
| Take Profit | 1.1200, 1.1000 |
| Stop Loss | 1.1460 |
| Key Levels | 1.0970, 1.1000, 1.1115, 1.1200, 1.1250, 1.1300, 1.1330, 1.1430, 1.1500, 1.1530, 1.1550, 1.1575, 1.1600, 1.1690, 1.1730 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1.1430 |
| Take Profit | 1.1200, 1.1000 |
| Stop Loss | 1.1460 |
| Key Levels | 1.0970, 1.1000, 1.1115, 1.1200, 1.1250, 1.1300, 1.1330, 1.1430, 1.1500, 1.1530, 1.1550, 1.1575, 1.1600, 1.1690, 1.1730 |
Current trend
The European currency continues to lose ground against the US dollar due to the favorable data on retail sales and industrial production of the United States. At the end of the week, data on the US labor market and construction sector are going to be published. Europe will respond with data on the consumer price index for July.
Support and resistance
At the end of last trading week, the pair overcame the key support level of 1.1500, which was a local minimum since the middle of last year. Next, the pair is expected to move towards the level of 1.1000; at this level one can expect the formation of a long ascending wave. Technical indicators on the daily chart confirm the forecast of the decline to new lows: MACD reflects the growing volume of short positions, and the Bollinger bands are still directed downwards.
Support levels: 1.1330, 1.1300, 1.1250, 1.1200, 1.1115, 1.1000, 1.0970.
Resistance levels: 1.1430, 1.1500, 1.1530, 1.1550, 1.1575, 1.1600, 1.1690, 1.1730.
Trading tips
In this situation, the volumes of short positions can be increased at the current level and the pending sell orders can be placed at 1.1430 with the targets of 1.1200, 1.1000 and stop loss at 1.1460.
The European currency continues to lose ground against the US dollar due to the favorable data on retail sales and industrial production of the United States. At the end of the week, data on the US labor market and construction sector are going to be published. Europe will respond with data on the consumer price index for July.
Support and resistance
At the end of last trading week, the pair overcame the key support level of 1.1500, which was a local minimum since the middle of last year. Next, the pair is expected to move towards the level of 1.1000; at this level one can expect the formation of a long ascending wave. Technical indicators on the daily chart confirm the forecast of the decline to new lows: MACD reflects the growing volume of short positions, and the Bollinger bands are still directed downwards.
Support levels: 1.1330, 1.1300, 1.1250, 1.1200, 1.1115, 1.1000, 1.0970.
Resistance levels: 1.1430, 1.1500, 1.1530, 1.1550, 1.1575, 1.1600, 1.1690, 1.1730.
Trading tips
In this situation, the volumes of short positions can be increased at the current level and the pending sell orders can be placed at 1.1430 with the targets of 1.1200, 1.1000 and stop loss at 1.1460.
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