IFC Markets - Analytics

    IFC Markets

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    Technical Analysis EURUSD : 2015-07-27

    Ifo Business Climate

    At 10:00 CET the Ifo institute released the Business Climate index in Germany. The monthly composite index is based on survey of manufacturers, retail and wholesale sellers. About 7000 business participants are interviewed on economic climate and market outlook for the next 6 months. It is worth mentioning that the index correlates with basic economic indicators from eurozone. Entrepreneurs' swift reaction to changes in business climate allows forecasting wages, investment flow and labor force turnover. The index includes two indicators: current business situation and business outlook.

    EUR/USD

    The statistics appeared to be better-than expected, making 108% as compared to the previous figure of 107%. After the release the latest EUR/USD bar crossed the resistance line. The RSI-Bars oscillator and the ParabolicSAR indicator, which reversed towards the green zone, confirmed the signal. We expect the Bill Williams fractal at 1.12257 to be breached. This level is also supported by the Donchian Channel upper boundary. Conservative traders are recommended to wait until Chicago Commodity Exchange releases the EUR futures trade volume. We estimate that the number of requests will exceed 250 000, confirming the bullish sentiment.

    EUR/USD

    A buy pending order may be placed at 1.2257; a stop loss can be placed at the Donchian Channel opposite boundary at 1.07983, since this level is assured by Parabolic historical values. The stop loss is supposed to be moved every four hours near the next fractal low, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point.

     

    Position Buy
    Buy stop above 1.12257
    Stop loss below 1.07983

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