EUR/USD

EUR/USD: general review

Current trend, On Wednesday, the pair experienced significant volatility: quotes rose to 1.1438, but after the Fed meeting, they sharply corrected to 1.1365.

The rate was raised to 2.50%. The accompanying statement noted that a further increase in rates is appropriate, but the forecast was reduced from three to two of them in the next year. Jerome Powell noted that the US economy has signs of slowing down, but the Fed does not see any fundamental changes, reassuring the market and helping strengthen the dollar. Today, the pair has resumed its growth, it has won back losses and is now traded at the level of 1.1480. The sales of USD are associated with fears of a deteriorating state of the American economy, which is hinted at by the inverse yield curve of bonds. The euro continues to be supported by the data on the agreement of the European Commission and the Italian government on the budget. Brussels will approve of its deficit at 2.04% and will not impose fines on Italy.

Support and resistance

The pair is trading at 1.1474 (Murrey [4/8]). If the price consolidates above it, this can lead to further growth to 1.1535 (Murrey [5/8]) and 1.1596 (Murrey [6/8]). However, the graph going beyond the upper border of Bollinger Bands and the rise of Stochastic to the oversold zone indicate the possibility of an upward correction movement to 1.1352 (Murrey [2/8], the midline of Bollinger Bands).

Support levels: 1.1413, 1.1352, 1.1291.

Resistance levels: 1.1474, 1.1535, 1.1596.

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Trading tips

Long positions may be opened if the instrument consolidates above 1.1474 with targets at 1.1535, 1.1596 and stop loss at 1.1429.

Short positions should be opened after the price reversal at 1.1474 with targets at 1.1413, 1.1352 and stop loss at 1.1500.

Implementation period: 4-5 days.

 

Scenario

Timeframe Weekly
Recommendation BUY STOP
Entry Point 1.1480
Take Profit 1.1535, 1.1596
Stop Loss 1.1429
Key Levels 1.1291, 1.1352, 1.1413, 1.1474, 1.1535, 1.1596

 

Alternative scenario

 

Recommendation SELL LIMIT
Entry Point 1.1474
Take Profit 1.1413, 1.1352
Stop Loss 1.1500
Key Levels 1.1291, 1.1352, 1.1413, 1.1474, 1.1535, 1.1596

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