Technical data of the currency pair:
Previous closing: 1.1166;
Daily range: 1.1154-1.1168;
Annual revenue: 2.47%;
Change in % for the previous day: -0.07.
- During last week Euro has significantly corrected (for over 150 points), after the rally since the beginning of March.
- Demand for the USD has grown in the past few sessions amid increasing expectations of the interest rate increase in the USA.
- Last week some important US statistics was released including US Labor Department data on the increase of the initial applications for unemployment benefits by 6000 to 258000. The forecast was 268000. Annual GDP growth for Q4 as been revised to 1.4% from 1%.
- Management of the Central bank of Netherlands said ECB may repurchase assets and continue monetary policy tightening.
- “Commitments of Traders” shows ambiguous picture. Large speculators reduced long positions by 84902 contracts. Short positions have been reduced by 81625 contacts.
- Decrease in the market sentiment in the EU, positive US statistics and high volatility put pressure on the currency pair. According to “COT” large speculators do not have common opinion about the Euro.
- Market movement is mixed at the moment. We recommend to enter the market from the key support and resistance levels.
Trading tips for the currency pair EUR/USD
Medium-term trading: The currency is traded in the range of 1.1165-1.12100. After breaking out and testing of these levels we recommend to enter the market. Positions can be opened at the signal line and the nearest support/resistance levels. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly above the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.
Short-term trading: on the chart with the timeframe 15M the currency is traded in the range of 1.1155-1.1175. After breakout and testing resistance level of 1.1175 we recommend to open long positions. Risk per trade is not more than 3% of capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 1.1210, 1.1240 and 1.1270 with the use of trailing stop.