EUR/USD has grown against the USD breaking down strong resistance level

February 9, 2016

Technical data of the currency pair:

Previous closing: 1.1193;
Daily range: 1.1086-1.1238;
Opening: 1.1193;
52- week range: 1.0456-1.1713;
Annual revenue: -1.00%;
Change in % for the previous day: +0.40;

Analytical review:

On 1 February executives of the European Central bank has announced that in the near future the bank is not going to introduce incentives, which can weaken Euro. Important US macro-economic data, which was released last week, showed positive dynamics in the US labor market. Euro hardly reacted to the US non-farm payrolls. In January 151000 new jobs were created, which is 20.5% less that the forecast of 190000. This week’s news, which can affect dynamics and volatility of the market, is the speech by Mrs Yellen, chairwoman of the US Fed on Wednesday and volume of the retail sales on Friday. The “Commitments of Traders” shows the increase of the long positions from 22330 contracts to 421111.
Due to a New Year holiday in China volatility in the market can decrease. Ambiguous monetary policy of the US Fed impedes the development of trend movement for the currency pair EUR/USD.

Summary:

Last week the currency pair EUR/USD has grown against the USD (over 390 points) breaking down strong resistance level of 1.1059 (highs of December 2014). ECB policy will not aim at weakening in Euro. The “Commitments of Traders” shows the increase of the long positions. Uncertainty of the US monetary policy impedes the development of definite movement.
Therefore, if the levels of the key support maintains, Euro can rise against the USD. Long positions are recommended.

Trading tips for the currency pair EUR/USD

Long-term trading:
The currency pair is traded at the strong level of 1.0960 –1.1060. In case of maintenance and testing of the level and respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Stop order can be placed below the signal line. For this position we recommend “multi-trade”. Take profit should be placed in parts at the levels of 1.1350, 1.1450 and 1.1650.

Short-term trading: currently, the pair is traded between the local support and resistance levels of 1.1155 – 1.1240. We recommend to enter the market after breakdown and testing of the above levels. The positions can be opened near the signal line and close to support/resistance levels. Stop-order can be placed slightly above/below the signal line. For this position we recommend “multi-trade”. Take profit should be placed in parts at the levels of 50%, 30% and 20%.

Publication source
LiteForex information  LiteForex reviews

September 23, 2016
Risk rating
The market is in need of a new narrative. The Fed meeting in December is too far off and for now, the US election is not something that entices excitement. With central banks on hold, markets are pushing the envelope in terms of risk...
September 23, 2016
Greenback regains some ground
On Friday, the evergreen buck regained some ground against other key currencies, as markets kept digesting the Fed’s latest policy decision...
September 23, 2016
Dollar rebounds slightly as precious metals are in a hot zone
The US Dollar rebounds after a substantial selloff led by the FOMC decision to leave the interest rate unchanged. The Dollar index, which tracks the US currency against major peers, recoiled with support at a 95.00 level on Thursday, adding 0.05% to the 95.36 price in the early Friday session...

Orbex Rating
HYCM Rating
Tickmill Rating
HotForex Rating
FXTM Rating
Larson&Holz IT Ltd Rating

Banc De Binary Rating
365BinaryOption Rating
OptionTrade Rating
OptionBit Rating
Anyoption Rating
Beeoptions Rating