EUR/USD: general analysis
30 January 2019, 08:45
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY |
| Entry Point | 1.1446 |
| Take Profit | 1.1565 |
| Stop Loss | 1.1395 |
| Key Levels | 1.1286, 1.1325, 1.1345, 1.1370, 1.1405, 1.1430, 1.1450, 1.1483, 1.1527, 1.1562 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1.1395 |
| Take Profit | 1.1325 |
| Stop Loss | 1.1425 |
| Key Levels | 1.1286, 1.1325, 1.1345, 1.1370, 1.1405, 1.1430, 1.1450, 1.1483, 1.1527, 1.1562 |
Current trend
This week the EUR/USD pair is moderately strengthening before the announcement of the Fed's interest rate decision.
At the moment, both currencies are under pressure but in the short term, USD difficulties seem more significant. In his last speech, Fed Chairman Jerome Powell acknowledged significant risks in the country's economy. Given the slowdown in economic growth in the United States and the world, market participants expect cautious rhetoric from the American regulator at today's FOMC Meeting. In addition, the US authorities have filed charges with the Chinese telecommunications giant Huawei, which complicates trade negotiations between the US and China. China is unlikely to leave it without consequences. Beijing can respond by tightening up negotiating positions or creating problems for US companies operating in the PRC, such as Apple.
At the same time, the uncertainty around Brexit does not exert significant pressure on EUR. The EU is not going to make changes to the deal, while members of the UK government continue to search for compromises.
Today, the key event is the US FOMC Meeting at 21:00 (GMT+2), where the interest rate decision will be announced.
Support and resistance
On the 4-hour chart, the instrument is being corrected within a limited range of 1.1430–1.1450. Bollinger bands are directed upwards, the price range decreased, the buy signal is still relevant. MACD histogram is in the positive zone, keeping a strong buy signal. Stochastic is approaching the overbought zone.
Resistance levels: 1.1450, 1.1483, 1.1527, 1.1562.
Support levels: 1.1430, 1.1405, 1.1370, 1.1345, 1.1325, 1.1286.
Trading tips
Long positions can be opened from the current level with the target at 1.1565 and stop loss 1.1395.
Short positions can be opened below 1.1400 with the target at 1.1325 and stop loss 1.1425.
Implementation period: 1–3 days.
This week the EUR/USD pair is moderately strengthening before the announcement of the Fed's interest rate decision.
At the moment, both currencies are under pressure but in the short term, USD difficulties seem more significant. In his last speech, Fed Chairman Jerome Powell acknowledged significant risks in the country's economy. Given the slowdown in economic growth in the United States and the world, market participants expect cautious rhetoric from the American regulator at today's FOMC Meeting. In addition, the US authorities have filed charges with the Chinese telecommunications giant Huawei, which complicates trade negotiations between the US and China. China is unlikely to leave it without consequences. Beijing can respond by tightening up negotiating positions or creating problems for US companies operating in the PRC, such as Apple.
At the same time, the uncertainty around Brexit does not exert significant pressure on EUR. The EU is not going to make changes to the deal, while members of the UK government continue to search for compromises.
Today, the key event is the US FOMC Meeting at 21:00 (GMT+2), where the interest rate decision will be announced.
Support and resistance
On the 4-hour chart, the instrument is being corrected within a limited range of 1.1430–1.1450. Bollinger bands are directed upwards, the price range decreased, the buy signal is still relevant. MACD histogram is in the positive zone, keeping a strong buy signal. Stochastic is approaching the overbought zone.
Resistance levels: 1.1450, 1.1483, 1.1527, 1.1562.
Support levels: 1.1430, 1.1405, 1.1370, 1.1345, 1.1325, 1.1286.
Trading tips
Long positions can be opened from the current level with the target at 1.1565 and stop loss 1.1395.
Short positions can be opened below 1.1400 with the target at 1.1325 and stop loss 1.1425.
Implementation period: 1–3 days.
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