EUR/USD

EUR/USD: general analysis

Current trend, On Wednesday, USD was under pressure after the Fed’s head speech and the publication of Q3 US GDP data, as a result of which the EUR/USD pair rose above the middle line of Bollinger bands around 1.1352.

Yesterday in New York, Jerome Powell noted that the interest rate is just below the neutral level, while in early October, he pointed out that the rates were far from neutrality, and there was much to increase. The market considered the statement as the regulator’s readiness to pause the rate increases. Also, according to preliminary data, Q3 GDP may reach 3.5%, which is significantly less than in the previous period (4.2%).

Now the price is at the upper border of the downward channel, and its further movement will depend on two main factors: the results of the meeting of President Trump and Chairman Xi Jinping at the G20 summit and the publication of FOMC Meeting Minutes. If the report contains new hints of a slowdown in rates of growth, USD will be affected negatively.

Support and resistance

The key "bearish" level is 1.1352 (Murrey [2/8], the middle line of Bollinger bands). In case of its breakdown, the price can fall to 1.1291 (Murrey [1/8]) and 1.1230 (Murrey [0/8], lower border of Bollinger bands). If the price consolidates above the upper border of the upward channel around ​​1.1380, it may grow to 1.1413 (Murrey [3/8]) and 1.1474 (Murrey [4/8]).

Resistance levels: 1.1413, 1.1474.

Support Levels: 1.1352, 1.1291, 1.1230.

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Trading tips

Short positions can be opened below the level of 1.1352 with the targets at 1.1291, 1.1230 and stop loss 1.1385.

Long positions can be opened above the level of 1.1380 with the targets at 1.1413, 1.1474 and stop loss around 1.1350.

Implementation period: 4–5 days.

 

Scenario

Timeframe Weekly
Recommendation SELL STOP
Entry Point 1.1345
Take Profit 1.1291, 1.1230
Stop Loss 1.1385
Key Levels 1.1230, 1.1291, 1.1352, 1.1413, 1.1474

 

Alternative scenario

 

Recommendation BUY STOP
Entry Point 1.1385
Take Profit 1.1413, 1.1474
Stop Loss 1.1350
Key Levels 1.1230, 1.1291, 1.1352, 1.1413, 1.1474

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