EUR/USD: EUR remains under pressure
10 June 2020, 10:34
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 1.1385 |
| Take Profit | 1.1547 |
| Stop Loss | 1.1300 |
| Key Levels | 1.1100, 1.1153, 1.1200, 1.1284, 1.1382, 1.1447, 1.1500, 1.1547 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1.1280 |
| Take Profit | 1.1153, 1.1100 |
| Stop Loss | 1.1382 |
| Key Levels | 1.1100, 1.1153, 1.1200, 1.1284, 1.1382, 1.1447, 1.1500, 1.1547 |
Current trend
EUR shows insignificant growth against USD during today's Asian session, continuing the development of yet another “bullish” impulse formed yesterday. The instrument tests the level of 1.1350 for a breakout and returns to the previous three-month local highs, updated on June 5. Some support to EUR is provided by yesterday's macroeconomic statistics from the eurozone. According to updated data, eurozone GDP in Q1 2020 fell by 3.6% QoQ after the previous estimate of –3.8% QoQ. In annual terms, the eurozone economy lost 3.1% YoY, which is also slightly better than previous data of –3.2% YoY. Employment Change in Q1 2020 accelerated from +0.3% YoY to +0.4% YoY.
USD remains under pressure amid expectations of the publication of the Fed two-day meeting minutes, scheduled for today. In addition, on Wednesday, investors expect the release of May statistics on consumer inflation in the USA.
Support and resistance
Bollinger Bands in D1 chart show stable growth. The price range is slightly narrowed from below, being too spacious for the current activity level in the market. MACD indicator is growing preserving a weak buy signal (located above the signal line). Stochastic, after an unsuccessful attempt to downward correction, again reverses in the direction of growth.
Current indications do not contradict further growth of the instrument in the near future.
Resistance levels: 1.1382, 1.1447, 1.1500, 1.1547.
Support levels: 1.1284, 1.1200, 1.1153, 1.1100.
Trading tips
To open long positions, one can rely on the breakout of 1.1382. Take-profit – 1.1547. Stop-loss – 1.1300.
A rebound from 1.1382 as from resistance, followed by a breakdown of 1.1284 may become a signal for new sales with the targets at 1.1153–1.1100. Stop-loss – 1.1382.
Implementation time: 2-3 days.
EUR shows insignificant growth against USD during today's Asian session, continuing the development of yet another “bullish” impulse formed yesterday. The instrument tests the level of 1.1350 for a breakout and returns to the previous three-month local highs, updated on June 5. Some support to EUR is provided by yesterday's macroeconomic statistics from the eurozone. According to updated data, eurozone GDP in Q1 2020 fell by 3.6% QoQ after the previous estimate of –3.8% QoQ. In annual terms, the eurozone economy lost 3.1% YoY, which is also slightly better than previous data of –3.2% YoY. Employment Change in Q1 2020 accelerated from +0.3% YoY to +0.4% YoY.
USD remains under pressure amid expectations of the publication of the Fed two-day meeting minutes, scheduled for today. In addition, on Wednesday, investors expect the release of May statistics on consumer inflation in the USA.
Support and resistance
Bollinger Bands in D1 chart show stable growth. The price range is slightly narrowed from below, being too spacious for the current activity level in the market. MACD indicator is growing preserving a weak buy signal (located above the signal line). Stochastic, after an unsuccessful attempt to downward correction, again reverses in the direction of growth.
Current indications do not contradict further growth of the instrument in the near future.
Resistance levels: 1.1382, 1.1447, 1.1500, 1.1547.
Support levels: 1.1284, 1.1200, 1.1153, 1.1100.
Trading tips
To open long positions, one can rely on the breakout of 1.1382. Take-profit – 1.1547. Stop-loss – 1.1300.
A rebound from 1.1382 as from resistance, followed by a breakdown of 1.1284 may become a signal for new sales with the targets at 1.1153–1.1100. Stop-loss – 1.1382.
Implementation time: 2-3 days.
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