EUR/USD: general analysis
07 February 2019, 09:40
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY |
| Entry Point | 1.1360 |
| Take Profit | 1.1405 |
| Stop Loss | 1.1340 |
| Key Levels | 1.1300, 1.1325, 1.1346, 1.1404, 1.1437, 1.1468, 1.1506, 1.1527 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1.1335 |
| Take Profit | 1.1290 |
| Stop Loss | 1.1360 |
| Key Levels | 1.1300, 1.1325, 1.1346, 1.1404, 1.1437, 1.1468, 1.1506, 1.1527 |
Current trend
This week, the EUR/USD pair is falling due to the poor macroeconomic publications in the Eurozone.
EUR is under pressure of negative reports from Germany. The volume of Factory Orders in December unexpectedly fell by 1.6%, while it was expected to grow by 0.3%. In annual terms, the decline was 7%. Yesterday, the release of statistics on the Trade Balance in the United States, which reflected the deficit reduction by 11.5% in November, affected the instrument negatively. In addition, USD was supported by President Trump’s speech to Congress. Trump noted the success in the labor market but from his speech, it became clear that the risks associated with the new suspension of the government, remain.
Today at 11:00 (GMT+2), the ECB will publish an economic bulletin, and at 12:00 (GMT+2), the European Commission will announce the forecast for economic growth. In addition, market participants expect news on the meeting of the head of the British government with the head of the European Commission.
Support and resistance
On the 4-hour chart, the instrument is falling along the lower Bollinger band. The indicator is directed downwards, and the price range widened, indicating a further decline. MACD histogram is in the negative zone, keeping a strong sell signal. Stochastic entered the oversold area; a buy signal can be formed within 1–2 days.
Resistance levels: 1.1404, 1.1437, 1.1468, 1.1506, 1.1527.
Support levels: 1.1346, 1.1325, 1.1300.
Trading tips
Long positions can be opened from the current level with the target at 1.1405 and stop loss 1.1340.
Short positions can be opened below the level of 1.1340 with the target at 1.1290 and stop loss 1.1360.
Implementation period: 1 day.
This week, the EUR/USD pair is falling due to the poor macroeconomic publications in the Eurozone.
EUR is under pressure of negative reports from Germany. The volume of Factory Orders in December unexpectedly fell by 1.6%, while it was expected to grow by 0.3%. In annual terms, the decline was 7%. Yesterday, the release of statistics on the Trade Balance in the United States, which reflected the deficit reduction by 11.5% in November, affected the instrument negatively. In addition, USD was supported by President Trump’s speech to Congress. Trump noted the success in the labor market but from his speech, it became clear that the risks associated with the new suspension of the government, remain.
Today at 11:00 (GMT+2), the ECB will publish an economic bulletin, and at 12:00 (GMT+2), the European Commission will announce the forecast for economic growth. In addition, market participants expect news on the meeting of the head of the British government with the head of the European Commission.
Support and resistance
On the 4-hour chart, the instrument is falling along the lower Bollinger band. The indicator is directed downwards, and the price range widened, indicating a further decline. MACD histogram is in the negative zone, keeping a strong sell signal. Stochastic entered the oversold area; a buy signal can be formed within 1–2 days.
Resistance levels: 1.1404, 1.1437, 1.1468, 1.1506, 1.1527.
Support levels: 1.1346, 1.1325, 1.1300.
Trading tips
Long positions can be opened from the current level with the target at 1.1405 and stop loss 1.1340.
Short positions can be opened below the level of 1.1340 with the target at 1.1290 and stop loss 1.1360.
Implementation period: 1 day.
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