EUR/USD: euro is in the correction
28 January 2019, 08:47
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 1.1430 |
| Take Profit | 1.1471, 1.1500 |
| Stop Loss | 1.1400, 1.1380 |
| Key Levels | 1.1335, 1.1351, 1.1376, 1.1400, 1.1424, 1.1450, 1.1471, 1.1500 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1.1390 |
| Take Profit | 1.1351, 1.1335 |
| Stop Loss | 1.1424, 1.1430 |
| Key Levels | 1.1335, 1.1351, 1.1376, 1.1400, 1.1424, 1.1450, 1.1471, 1.1500 |
Current trend
On Friday, EUR rose steadily against USD, being corrected upwards after a decline the day before, when it renewed local lows since December 14.
EUR decrease is due to the comments of the ECB Head Mario Draghi. During the press conference following the meeting of the regulator, he noted that the risks for the growth of the European economy were negative due to geopolitical factors and the threat of protectionism. However, the possibility of a recession in the Eurozone is low.
During today’s Asian session, the instrument is developing the “bullish” dynamics. Investors are focused on US housing price indices and Retail Sales. In addition, on Monday, the results of the next Brexit vote will be announced. Failures around the deal may affect EUR negatively.
Support and resistance
On the daily chart, Bollinger bands moderately reduced. The price range is actively narrowing, reflecting the ambiguous recent trading nature. MACD grows, keeping a poor buy signal (the histogram is above the signal line), and is preparing to test the zero line. Stochastic is also directed upwards but approaches its highs, which indicates that EUR can become overbought in the super short term.
It is better to keep current long positions until the situation is clear.
Resistance levels: 1.1424, 1.1450, 1.1471, 1.1500.
Support levels: 1.1400, 1.1376, 1.1351, 1.1335.
Trading tips
Long positions can be opened after the breakout of 1.1424 with the target at 1.1471 or 1.1500. Stop loss is 1.1400 or 1.1380.
Short positions can be opened after the rebound from 1.1424 and the breakdown of 1.1400 with the targets at 1.1351–1.1335. Stop loss is 1.1424–1.1430.
Implementation period: 2–3 days.
On Friday, EUR rose steadily against USD, being corrected upwards after a decline the day before, when it renewed local lows since December 14.
EUR decrease is due to the comments of the ECB Head Mario Draghi. During the press conference following the meeting of the regulator, he noted that the risks for the growth of the European economy were negative due to geopolitical factors and the threat of protectionism. However, the possibility of a recession in the Eurozone is low.
During today’s Asian session, the instrument is developing the “bullish” dynamics. Investors are focused on US housing price indices and Retail Sales. In addition, on Monday, the results of the next Brexit vote will be announced. Failures around the deal may affect EUR negatively.
Support and resistance
On the daily chart, Bollinger bands moderately reduced. The price range is actively narrowing, reflecting the ambiguous recent trading nature. MACD grows, keeping a poor buy signal (the histogram is above the signal line), and is preparing to test the zero line. Stochastic is also directed upwards but approaches its highs, which indicates that EUR can become overbought in the super short term.
It is better to keep current long positions until the situation is clear.
Resistance levels: 1.1424, 1.1450, 1.1471, 1.1500.
Support levels: 1.1400, 1.1376, 1.1351, 1.1335.
Trading tips
Long positions can be opened after the breakout of 1.1424 with the target at 1.1471 or 1.1500. Stop loss is 1.1400 or 1.1380.
Short positions can be opened after the rebound from 1.1424 and the breakdown of 1.1400 with the targets at 1.1351–1.1335. Stop loss is 1.1424–1.1430.
Implementation period: 2–3 days.
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