LiteForex - Analytics

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    Analytical review of the currency pair EUR/USD on 18.02.2016

    EUR/USD

    Technical data of the currency pair:

    Previous closing: 1.1127;
    Daily range: 1.1119-1.1150;
    Opening: 1.1127;
    52- week range: 1.0456-1.1713;
    Annual revenue: -2.44%;
    Change in % for the previous day: -0.22;


    Analytical review:

    • In the past 4 trading session Euro has weakened against the USD, losing 200 points. On Monday, management of ECB has said that the Central bank is planning to stimulate growth and inflation in EU.
    • Important European statistics released on Tuesday showed decrease in the business sentiments of Germany amid high market volatility and slowdown of the economic growth in the world.
    • Yesterday, the US Bureau of Labor Statistics released producer price index. The index rose by 0.1%, which was above analysts’ forecast.
    • “Commitments of Traders’ indicate significant increase of short positions. The number of the short positions opened by the large speculators rose by 226360 contracts.
    • Some important news will be released this week, including index of production activity from Philadelphia Fed, crude oil inventories (today) core consumer price index (Friday). This information can change dynamics and volatility in the market.

    Summary:

    • During yesterday’s session Euro weakened by 0.22% versus the USD. Slowdown of the global economy, high volatility in the market, poor European statistics have a strong negative impact on the pair. According to “COT” large investors has increased short positions.
    • In the near future Euro can decline against the USD It is recommended to open short positions.

    Trading tips for the currency pair EUR/USD

    Medium-term trading:
    at the moment, the currency is traded between the local support and resistance levels of 1.1085-1.1240. After breaking down and testing of the level 1.1085 in case of respective confirmation (for example, a pattern Price Action), we recommend to open short positions. Risk per trade is less than 1.5% of capital. . Stop-order can be placed slightly above the signal line. Take profit should be placed in parts at the levels 1. 0000, 1.0890 and 1.0835 with the use of trailing stop.


    Short-term trading: currently, the currency is traded in the range of 1.1115-1.1150. We recommend to enter the market after breaking down and testing of these levels. Positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is less than 2.5% of capital. Stop-order can be placed slightly above/below the signal line. Take profit should be placed in parts at the levels of 50%, 30% and 20% with the use of trailing stop.



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