EUR/USD: euro remains under pressure
08 February 2019, 09:03
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 1.1360 |
| Take Profit | 1.1400, 1.1424, 1.1450 |
| Stop Loss | 1.1321 |
| Key Levels | 1.1231, 1.1268, 1.1288, 1.1321, 1.1351, 1.1376, 1.1400, 1.1424 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1.1315 |
| Take Profit | 1.1268, 1.1231 |
| Stop Loss | 1.1351 |
| Key Levels | 1.1231, 1.1268, 1.1288, 1.1321, 1.1351, 1.1376, 1.1400, 1.1424 |
Current trend
Today, during the Asian session, EUR is relatively stable against USD. Investors are closing the profitable positions after a confident rally throughout the current trading week.
Yesterday, ECB economic bulletin was published, which affected EUR negatively. The document notes that increasing external negative factors lead to increased risks for the European economy. The dynamics of the main indicators remains negative, so the regulator expects a slowdown in economic growth in the near future: for 2019, its forecast was revised from the previous +1.9% to +1.3%.
On Friday, investors are focused on December Imports and Exports data from Germany. After the disappointing November statistic, analysts expect a noticeable improvement in the dynamics; however, it will not lead to an increase in the trade surplus.
Support and resistance
On the daily chart, Bollinger bands are moving flat. The price range widens, letting the “bears” renew local lows. MACD indicator decreases, keeping a strong downward signal (the histogram is below the signal line). Stochastic, reaching its lows, reverses into an upward plane, indicating the risks of corrective growth in the short and/or super short term.
It is better to wait until the trading signals from technical indicators are clear.
Resistance levels: 1.1351, 1.1376, 1.1400, 1.1424.
Support levels: 1.1321, 1.1288, 1.1268, 1.1231.
Trading tips
Long positions can be opened after a rebound from the level of 1.1321 and the breakout of the level of 1.1351 with the targets at 1.1400 or 1.1424–1.1450. Stop loss is 1.1321.
Short positions can be opened after the breakdown of the level of 1.1321 with the targets at 1.1268–1.1231. Stop loss is 1.1351.
Implementation period: 2–3 days.
Today, during the Asian session, EUR is relatively stable against USD. Investors are closing the profitable positions after a confident rally throughout the current trading week.
Yesterday, ECB economic bulletin was published, which affected EUR negatively. The document notes that increasing external negative factors lead to increased risks for the European economy. The dynamics of the main indicators remains negative, so the regulator expects a slowdown in economic growth in the near future: for 2019, its forecast was revised from the previous +1.9% to +1.3%.
On Friday, investors are focused on December Imports and Exports data from Germany. After the disappointing November statistic, analysts expect a noticeable improvement in the dynamics; however, it will not lead to an increase in the trade surplus.
Support and resistance
On the daily chart, Bollinger bands are moving flat. The price range widens, letting the “bears” renew local lows. MACD indicator decreases, keeping a strong downward signal (the histogram is below the signal line). Stochastic, reaching its lows, reverses into an upward plane, indicating the risks of corrective growth in the short and/or super short term.
It is better to wait until the trading signals from technical indicators are clear.
Resistance levels: 1.1351, 1.1376, 1.1400, 1.1424.
Support levels: 1.1321, 1.1288, 1.1268, 1.1231.
Trading tips
Long positions can be opened after a rebound from the level of 1.1321 and the breakout of the level of 1.1351 with the targets at 1.1400 or 1.1424–1.1450. Stop loss is 1.1321.
Short positions can be opened after the breakdown of the level of 1.1321 with the targets at 1.1268–1.1231. Stop loss is 1.1351.
Implementation period: 2–3 days.
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