LiteForex - Analytics

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    Analytical review of the currency pair EUR/USD on 29.02.2016

    EUR/USD

    Technical data of the currency pair:

    Previous closing: 1.0932;
    Daily range: 1.0912-1.0962;
    Opening: 1.0916;
    52- week range: 1.0456-1.1713;
    Annual revenue: -2.43%;
    Change in % for the previous day: -0.81.


    Analytical review:

    • In the past 4 trading sessions Euro has traded in the range of 1.0960-1.1065. At the session last Friday Euro consolidates at the local support level of 1.0960. European currency lost over 130 points versus the USD.
    • Last week US statistics showed that sales on new houses fell to 494К. Volume of orders for durable goods increased by 1.8%. Over 3 months GDP rose by 1% on annual basis, exceeding analysts’ forecast by 0.6%.
    • Euro is under pressure due to uncertainty about “Brexit” (exit of the UK from EU). The referendum on this issue is scheduled on 23 June.
    • “Commitments of Traders” shows considerable increase of short positions. Large speculators opened up to 240448 new positions.
    • This week news will include: consumer price index in EU (today) number of unemployed in Germany and ISM business activity index in the manufacturing sector of Germany (Tuesday). This information might affect dynamics and volatility in the market.

    Summary:

    • During trading session last Friday Euro fell by 0.81% versus the USD. Concern about “Brexit”, high volatility in the market, positive US macro-economic statistics have impact on the pair. According to “COT” large investors 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 1.0960. After testing and maintaining the levels of 1.0960-1.1010 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 2% of capital. Stop order can be placed above the signal line. Take profit should be placed in parts at the levels of 1.0875, 1.0820 and 1.0750 with the use of trailing stop.


    Short-term trading: currently, the currency is traded in the range of 1.0915-1.0940. We recommend to enter the market with the short positions after breaking down and testing of the level of 1.0915. Risk per trade is not more than 3% of capital. Stop order can be placed slightly above the signal line. Take profit should be placed in parts of 50%, 30% and 20% with the use of trailing stop.



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