EUR/USD: general review
20 December 2018, 13:35
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY STOP |
| Entry Point | 1.1480 |
| Take Profit | 1.1535, 1.1596 |
| Stop Loss | 1.1429 |
| Key Levels | 1.1291, 1.1352, 1.1413, 1.1474, 1.1535, 1.1596 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL LIMIT |
| Entry Point | 1.1474 |
| Take Profit | 1.1413, 1.1352 |
| Stop Loss | 1.1500 |
| Key Levels | 1.1291, 1.1352, 1.1413, 1.1474, 1.1535, 1.1596 |
Current trend
On Wednesday, the pair experienced significant volatility: quotes rose to 1.1438, but after the Fed meeting, they sharply corrected to 1.1365.
The rate was raised to 2.50%. The accompanying statement noted that a further increase in rates is appropriate, but the forecast was reduced from three to two of them in the next year. Jerome Powell noted that the US economy has signs of slowing down, but the Fed does not see any fundamental changes, reassuring the market and helping strengthen the dollar. Today, the pair has resumed its growth, it has won back losses and is now traded at the level of 1.1480. The sales of USD are associated with fears of a deteriorating state of the American economy, which is hinted at by the inverse yield curve of bonds. The euro continues to be supported by the data on the agreement of the European Commission and the Italian government on the budget. Brussels will approve of its deficit at 2.04% and will not impose fines on Italy.
Support and resistance
The pair is trading at 1.1474 (Murrey [4/8]). If the price consolidates above it, this can lead to further growth to 1.1535 (Murrey [5/8]) and 1.1596 (Murrey [6/8]). However, the graph going beyond the upper border of Bollinger Bands and the rise of Stochastic to the oversold zone indicate the possibility of an upward correction movement to 1.1352 (Murrey [2/8], the midline of Bollinger Bands).
Support levels: 1.1413, 1.1352, 1.1291.
Resistance levels: 1.1474, 1.1535, 1.1596.
Trading tips
Long positions may be opened if the instrument consolidates above 1.1474 with targets at 1.1535, 1.1596 and stop loss at 1.1429.
Short positions should be opened after the price reversal at 1.1474 with targets at 1.1413, 1.1352 and stop loss at 1.1500.
Implementation period: 4-5 days.
On Wednesday, the pair experienced significant volatility: quotes rose to 1.1438, but after the Fed meeting, they sharply corrected to 1.1365.
The rate was raised to 2.50%. The accompanying statement noted that a further increase in rates is appropriate, but the forecast was reduced from three to two of them in the next year. Jerome Powell noted that the US economy has signs of slowing down, but the Fed does not see any fundamental changes, reassuring the market and helping strengthen the dollar. Today, the pair has resumed its growth, it has won back losses and is now traded at the level of 1.1480. The sales of USD are associated with fears of a deteriorating state of the American economy, which is hinted at by the inverse yield curve of bonds. The euro continues to be supported by the data on the agreement of the European Commission and the Italian government on the budget. Brussels will approve of its deficit at 2.04% and will not impose fines on Italy.
Support and resistance
The pair is trading at 1.1474 (Murrey [4/8]). If the price consolidates above it, this can lead to further growth to 1.1535 (Murrey [5/8]) and 1.1596 (Murrey [6/8]). However, the graph going beyond the upper border of Bollinger Bands and the rise of Stochastic to the oversold zone indicate the possibility of an upward correction movement to 1.1352 (Murrey [2/8], the midline of Bollinger Bands).
Support levels: 1.1413, 1.1352, 1.1291.
Resistance levels: 1.1474, 1.1535, 1.1596.
Trading tips
Long positions may be opened if the instrument consolidates above 1.1474 with targets at 1.1535, 1.1596 and stop loss at 1.1429.
Short positions should be opened after the price reversal at 1.1474 with targets at 1.1413, 1.1352 and stop loss at 1.1500.
Implementation period: 4-5 days.
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