EUR/USD: general review
25 January 2019, 10:08
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL |
| Entry Point | 1.1323 |
| Take Profit | 1.1215 |
| Stop Loss | 1.1345 |
| Key Levels | 1.1215, 1.1242, 1.1266, 1.1287, 1.1308, 1.1335, 1.1350, 1.1373, 1.1395, 1.1409 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 1.1350 |
| Take Profit | 1.1409 |
| Stop Loss | 1.1320 |
| Key Levels | 1.1215, 1.1242, 1.1266, 1.1287, 1.1308, 1.1335, 1.1350, 1.1373, 1.1395, 1.1409 |
Current trend
EUR fell against USD on Thursday amid weak PMI data in the euro area and the ECB’s decision to leave interest rates unchanged at 0.00%.
Manufacturing PMI of the euro area fell to 50.5 points against 51.4 points last month, and Services PMI was 50.8 points against the previous value of 51.2 points.
Statistics from the US released yesterday supported USD. Manufacturing PMI increased to 54.9 points in January from 53.8 a month earlier. Initial jobless claims dropped to 199K from 212K a week earlier. Services PMI was better than the forecast of 54.0 points, but dropped to 54.2 points in January from 54.4 points a month earlier.
Today, investors are waiting for the publication of data on German Ifo Business Climate Index. The indicator is expected to fall to 100.7 points in January from 101.0 points a month earlier. In the USA, the data on Durable Goods Orders will be released today at 15:30 (GMT+2). It is expected that the indicator will rise to 1.8% in December from –4.3% a month earlier.
Support and resistance
On the H4 chart, a downward movement correction is observed; the pair is trading between the center and lower borders of Bollinger Bands. MACD histogram is in the negative zone keeping a signal for the opening of short positions.
Resistance levels: 1.1335, 1.1350, 1.1373, 1.1395, 1.1409.
Support levels: 1.1308, 1.1287, 1.1266, 1.1242, 1.1215.
Trading tips
Short positions may be opened from the level of 1.1285 with target at 1.1215 and stop loss at 1.1320.
Long positions may be opened from the level of 1.1350 with target at 1.1409 and stop loss at 1.1320.
Implementation time: 1-3 days.
EUR fell against USD on Thursday amid weak PMI data in the euro area and the ECB’s decision to leave interest rates unchanged at 0.00%.
Manufacturing PMI of the euro area fell to 50.5 points against 51.4 points last month, and Services PMI was 50.8 points against the previous value of 51.2 points.
Statistics from the US released yesterday supported USD. Manufacturing PMI increased to 54.9 points in January from 53.8 a month earlier. Initial jobless claims dropped to 199K from 212K a week earlier. Services PMI was better than the forecast of 54.0 points, but dropped to 54.2 points in January from 54.4 points a month earlier.
Today, investors are waiting for the publication of data on German Ifo Business Climate Index. The indicator is expected to fall to 100.7 points in January from 101.0 points a month earlier. In the USA, the data on Durable Goods Orders will be released today at 15:30 (GMT+2). It is expected that the indicator will rise to 1.8% in December from –4.3% a month earlier.
Support and resistance
On the H4 chart, a downward movement correction is observed; the pair is trading between the center and lower borders of Bollinger Bands. MACD histogram is in the negative zone keeping a signal for the opening of short positions.
Resistance levels: 1.1335, 1.1350, 1.1373, 1.1395, 1.1409.
Support levels: 1.1308, 1.1287, 1.1266, 1.1242, 1.1215.
Trading tips
Short positions may be opened from the level of 1.1285 with target at 1.1215 and stop loss at 1.1320.
Long positions may be opened from the level of 1.1350 with target at 1.1409 and stop loss at 1.1320.
Implementation time: 1-3 days.
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