EUR/USD: general review
18 July 2019, 12:43
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 1.1200 |
| Take Profit | 1.1170, 1.1140, 1.1108 |
| Stop Loss | 1.1225 |
| Key Levels | 1.1108, 1.1140, 1.1170, 1.1230, 1.1290, 1.1350 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY |
| Entry Point | 1.1230 |
| Take Profit | 1.1290, 1.1350 |
| Stop Loss | 1.1210 |
| Key Levels | 1.1108, 1.1140, 1.1170, 1.1230, 1.1290, 1.1350 |
Current trend
This week, the pair had ambiguous dynamics: first, it dropped to the level of 1.1200, but then growth started. USD is pressured by weak data on the construction market and the difficult situation around the US-PRC trade negotiations. In June, the number of issued building permits decreased from 1.299 to 1.220 million. The new houses construction indicator fell from 1.265 to 1.253 million.
According to The Wall Street Journal, the US-China negotiations have stalled due to disagreements over the restrictions imposed on Huawei by the US administration. Also, during the week the market received a few more negative signals. On Tuesday, President Donald Trump said that the deal is far from the conclusion and threatened, if necessary, to increase tariffs on the remaining Chinese exports in the amount of USD 325 billion. The WTO Court of Appeal found a number of US duties on Chinese goods violate the rules of the trade organization, which gives the PRC the right to retaliate. However, in this case, the trade war may worsen.
Support and resistance
The price is trying to consolidate above 1.1230 (Murrey [4/8]) and, if successful, it will go higher to 1.1290 (Murrey [5/8], the midline of Bollinger Bands). Otherwise, the movement will resume to 1.1170 (Murrey [3/8], the lower line of Bollinger Bands), 1.1140 (Murrey [-2/8]), and 1.1108 (Murrey [2/8]).
Technical indicators allow the decline: MACD histogram is growing in the negative zone, and Stochastic is pointing down.
Resistance levels: 1.1230, 1.1290, 1.1350.
Support levels: 1.1170, 1.1140, 1.1108.
Trading tips
Short positions may be opened from 1.1200 with targets at 1.1170, 1.1140, 1.1108 and stop loss at 1.1225.
Long positions may be opened if the instrument consolidates above 1.1230 with targets at 1.1290, 1.1350 and stop loss at 1.1210.
Implementation period: 3-4 days.
This week, the pair had ambiguous dynamics: first, it dropped to the level of 1.1200, but then growth started. USD is pressured by weak data on the construction market and the difficult situation around the US-PRC trade negotiations. In June, the number of issued building permits decreased from 1.299 to 1.220 million. The new houses construction indicator fell from 1.265 to 1.253 million.
According to The Wall Street Journal, the US-China negotiations have stalled due to disagreements over the restrictions imposed on Huawei by the US administration. Also, during the week the market received a few more negative signals. On Tuesday, President Donald Trump said that the deal is far from the conclusion and threatened, if necessary, to increase tariffs on the remaining Chinese exports in the amount of USD 325 billion. The WTO Court of Appeal found a number of US duties on Chinese goods violate the rules of the trade organization, which gives the PRC the right to retaliate. However, in this case, the trade war may worsen.
Support and resistance
The price is trying to consolidate above 1.1230 (Murrey [4/8]) and, if successful, it will go higher to 1.1290 (Murrey [5/8], the midline of Bollinger Bands). Otherwise, the movement will resume to 1.1170 (Murrey [3/8], the lower line of Bollinger Bands), 1.1140 (Murrey [-2/8]), and 1.1108 (Murrey [2/8]).
Technical indicators allow the decline: MACD histogram is growing in the negative zone, and Stochastic is pointing down.
Resistance levels: 1.1230, 1.1290, 1.1350.
Support levels: 1.1170, 1.1140, 1.1108.
Trading tips
Short positions may be opened from 1.1200 with targets at 1.1170, 1.1140, 1.1108 and stop loss at 1.1225.
Long positions may be opened if the instrument consolidates above 1.1230 with targets at 1.1290, 1.1350 and stop loss at 1.1210.
Implementation period: 3-4 days.
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