LiteForex - Analytics

    LiteForex

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    Analytical review of the currency pair EUR/USD on 23.02.2016

    EUR/USD

    Technical data of the currency pair:

    Previous closing: 1.1031;
    Daily range: 1.1004-1.1124;
    Opening: 1.1031;
    52- week range: 1.0456-1.1713;
    Annual revenue: -3.09%;
    Change in % for the previous day: -0.87.


    Analytical review:

    • ​In the last three trading sessions Euro has traded in the range of 1.1065-1.1135. Yesterday the currency has broken out and consolidated below the local support level of 1.1065. Euro has lost over 120 points versus the USD.
    • Yesterday’s decision of the mayor of London Boris Johnson to support campaign of the UK exit from EU, has increased the concerns.
    • European statistics released yesterday showed that composite business activity index, as per Markit, fell by 0.6 from 53.6 to 53.0, reaching 13-month lows.
    • “Commitments of Traders” demonstrates the increase of the short positions up to 237498 contracts.
    • The news of this week will include GDP of Germany; sales in the secondary housing market in the USA (today) and consumer price index in EU (Thursday). This information can affect volatility and movement dynamics in the market.

    Summary:

    • Yesterday, Euro fell by 0.87% against the USD. Concerns about Brexit, increased volatility and poor European statistics have a strong impact on the currency. “СОТ” showed that large speculators have increased short positions.
    • It is likely that Euro will weaken against the USD. We recommend to open short positions.

    Trading tips for the currency pair EUR/USD

    Medium-term trading:
    the currency has consolidated below support level of 1.1065. If the pair consolidates in the range of 1.1065-1.1135 and in case of the respective confirmations (for example: a pattern Price Action), we recommend to open short positions. Risk per trade is not more than 1.5% of capital. Stop order can be placed above the signal line. Take profit should be placed in parts at the levels of 1.0970, 1.910 and 1.0830 with the use of trailing stop.


    Short-term trading: currently, the currency is traded in the range of 1.1005-1.1050. 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. Take profit should be placed in parts of 50%, 30% and 20% with the use of trailing stop.



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