LiteForex - Analytics

    LiteForex

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    Analytical review of EUR/USD currency pair for 10.06.2016.

    Technical data of the currency pair:

    Prev. closing: 1.1318;
    Daily range: 1.1290-1.1320;
    Opening: 1.1318;
    52-week range: 1.0538-1.1713;
    Annual income: 1.05%;
    Chg. % for prev. day: -0.74.

    Analytical review:

    • Since early June the single currency has significantly gained in price against the US dollar (more than 200 points). During yesterday's trading session, the euro rally was stopped by the resistance level 1.1400, which resulted in the decline of the pair by 0.74%;
    • Today, important stats on the EU economy were published. According to the Federal Statistical Office of Germany, consumer price index in the country amounted to 0.3%, which came up to the market expectations;
    • Last month, Germany's trade surplus increased to 24.0B in comparison with the previous value at 23.7B. Analysts had expected a decline to 23.0B;
    • Yesterday the US Department of Labor announced that the number of initial jobless claims in the country fell to 264,000 compared with the previous value at 268,000. Analysts had expected the index to increase to 270,000;
    • Data provided by Commitments of Traders show a mixed picture. Large speculators increased their long positions by 9,303 contracts. However, there is also an increase in short positions by 6,467 contracts.

    Summary:

    • The positive economic data from the EU and the United States, together with the ambiguous situation in the world economy have a significant pressure on the single currency. According to COT, large players have no single opinion on the euro;
    • Thus, there is no unidirectional movement on the market at the moment. We recommend searching for entry points from the key support and resistance levels.

    Trading recommendations for EUR/USD currency pair

    Key levels:
    Support levels: 1.1210, 1.1135
    Resistance levels: 1.1335, 1.1400

    Medium-term trade, H1
    At the moment, the currency has overcome and fixed near the local support below 1.1335. If it holds the supply zone 1.1310-1.1335 and subject to the relevant evidence (for example - Price Action pattern), we recommend looking for entry points for opening short positions. Risk per trade - no more than 2% of the capital. Stop order should be positioned slightly above the signal formation. When accompanying the position we recommend fixing potential profit in parts at the levels: 1.1250, 1.1210 and 1.1150 using a trailing stop.

    Medium-term trade, H1
    Medium-term trade, H1

    Short-term trading, M15
    At the moment, the currency is trading in the range 1.1295-1.1330. We recommended seeking an entry point into the market upon penetration and testing of this zone. Positions should be opened in the direction of the signal formation and the next support / resistance level. Risk per trade - no more than 3% of the capital. Stop order should be positioned slightly above / below the signal formation. When accompanying the position we recommend fixing potential profit in parts of 50%, 30%, 20% from the potential movement using a trailing stop.

    Short-term trading, M15
    Short-term trading, M15


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