EUR/USD: general analysis
23 January 2019, 11:46
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | BUY STOP |
| Entry Point | 1.1380 |
| Take Profit | 1.1413, 1.1474 |
| Stop Loss | 1.1350 |
| Key Levels | 1.1230, 1.1291, 1.1352, 1.1413, 1.1474, 1.1535 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1.1340 |
| Take Profit | 1.1290, 1.1230 |
| Stop Loss | 1.1390 |
| Key Levels | 1.1230, 1.1291, 1.1352, 1.1413, 1.1474, 1.1535 |
Current trend
At the beginning of the week, the EUR/USD pair fell moderately. Currently, the instrument is trading at 1.1352 (Murrey [2/8]). Investors are focused on the US-China trade negotiations and the Shutdown.
Yesterday, the Financial Times announced the cancellation of the Chinese delegation visit to Washington because of the lack of progress. Later in an interview with CNBC, economic adviser Larry Kudlow refuted this data, stating that no intermediate meetings were planned, and Washington waited for Vice-Premier of the State Council of China Liu He on January 30–31. The parties may negotiate Chinese proposals on increasing the volume of imports of American products over the next six years by 1 trillion USD annually. As for the Shutdown, Kudlow admitted that it may slow the GDP growth (by about 0.1% per each week of idleness) but the economy will recover quickly after the government resumes its work.
Yesterday's poor EU ZEW PMI data were offset by negative statistics US Existing Home sales, which dropped by 6.4%. It prevented USD from strengthening and kept the pair balanced.
Support and resistance
The price is at the lower border of the upward channel around 1.1352 (Murrey [2/8]). Here, a correction to 1.1413 (Murrey [3/8], the middle line of Bollinger bands) and 1.1474 (Murrey [4/8]) may begin, the possibility of which is confirmed by Stochastic’s reversal in the oversold zone. Fixing the price below 1.1352 will let it fall to 1.1291 (Murrey [1/8]) and 1.1230 (Murrey [0/8]).
Resistance levels: 1.1413, 1.1474, 1.1535.
Support levels: 1.1352, 1.1291, 1.1230.
Trading tips
Long positions can be opened from 1.1380 with the targets at 1.1413, 1.1474 and stop loss around 1.1350.
Short positions can be opened below 1.1352 with the targets at 1.1290, 1.1230 and stop loss 1.1390.
Implementation period: 4–5 days.
At the beginning of the week, the EUR/USD pair fell moderately. Currently, the instrument is trading at 1.1352 (Murrey [2/8]). Investors are focused on the US-China trade negotiations and the Shutdown.
Yesterday, the Financial Times announced the cancellation of the Chinese delegation visit to Washington because of the lack of progress. Later in an interview with CNBC, economic adviser Larry Kudlow refuted this data, stating that no intermediate meetings were planned, and Washington waited for Vice-Premier of the State Council of China Liu He on January 30–31. The parties may negotiate Chinese proposals on increasing the volume of imports of American products over the next six years by 1 trillion USD annually. As for the Shutdown, Kudlow admitted that it may slow the GDP growth (by about 0.1% per each week of idleness) but the economy will recover quickly after the government resumes its work.
Yesterday's poor EU ZEW PMI data were offset by negative statistics US Existing Home sales, which dropped by 6.4%. It prevented USD from strengthening and kept the pair balanced.
Support and resistance
The price is at the lower border of the upward channel around 1.1352 (Murrey [2/8]). Here, a correction to 1.1413 (Murrey [3/8], the middle line of Bollinger bands) and 1.1474 (Murrey [4/8]) may begin, the possibility of which is confirmed by Stochastic’s reversal in the oversold zone. Fixing the price below 1.1352 will let it fall to 1.1291 (Murrey [1/8]) and 1.1230 (Murrey [0/8]).
Resistance levels: 1.1413, 1.1474, 1.1535.
Support levels: 1.1352, 1.1291, 1.1230.
Trading tips
Long positions can be opened from 1.1380 with the targets at 1.1413, 1.1474 and stop loss around 1.1350.
Short positions can be opened below 1.1352 with the targets at 1.1290, 1.1230 and stop loss 1.1390.
Implementation period: 4–5 days.
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