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    EUR/USD: Euro is under pressure. Technical analysis for 06/07/2016

    Review and dynamics

    As instability in the financial markets, caused by Brexit continues, investors prefer to invest to safe-haven assets, such as the yen, gold. Despite reserved statements by the US Fed representatives about future US monetary policy, demand for the USD is also increasing, especially against the European currency.

    It is obvious, that Brexit has had a negative impact on both USD and Euro. Despite the decline in the EUR/USD, which followed straight after the announcement of the referendum results, the pair managed to go up by 270 points from the lows June at the level of 1.0915.

    However, upward corrective stopped at the resistance level of 1.1200 (ЕМА200, ЕМА144 on the daily chart and ЕМА50 on the weekly chart). Currently the EUR/USD has declined for a second day in a row.

    Our opinion

    The release of important US macroeconomic statistics is scheduled for today (at 14:30, 15:45, 16:00 and 20:00).

    Positive US data will trigger the rise in the USD.

    On 4 hour, daily and weekly charts the indicators OsMA and Stochastic give sell signals, the indicators on the monthly are also in favor of the short positions.

    Although on the weekly chart the pair EUR/USD is in the upward channel, the lower limit of which now goes near the level of 1.0915 (upper limit of the channel is near the level of 1.1785 - Fibonacci 38.2% to the last wave of decline from the highs of 2014, ЕМА144 on the weekly chart), the Euro will remain under pressure until the completion of process of separation of the UK and the EU, and the ECB works out a plan for the least painful way out of the situation.

    Sell on the market. Stop-Loss: 1.1080. Targets: 1.1000, 1.0915, 1.0870 and 1.0800.
    Buy Stop: 1.1110. Stop-Loss: 1.1070. Targets: 1.1150, 1.1200, 1.1285, 1.1300, 1.1400, 1.1430, 1.1485 and 1.1500.


    Trading tips
    Sell on the market. Stop-Loss: 1.1080. Targets: 1.1000, 1.0915, 1.0870 and 1.0800.
    Buy Stop: 1.1110. Stop-Loss: 1.1070. Targets: 1.1150, 1.1200, 1.1285, 1.1300, 1.1400, 1.1430, 1.1485 and 1.1500.

    In the ascending channel
    In the ascending channel

    Below the levels of 1.1200 and 1.1100
    Below the levels of 1.1200 and 1.1100


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