FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
FxPro information and reviews
OctaFX information and reviews

Euro fell after good report on US economy's growth rate

18 February 2021

I paid attention to forming a signal to enter short positions in the euro in my afternoon forecast. Let's take a look at the 5-minute chart and talk about what happened. Considering that the eurozone GDP report was slightly better than economists' forecasts, and the index of sentiment in the business environment in Germany and the eurozone significantly increased - this resulted in the euro's growth and the breakdown of resistance at 1.2149. For the sake of fairness, take note that I did not get a normal consolidation and the 1.2149 level was not tested from top to bottom, since this area was smeared, so I did not manage to enter long positions from this level as I had planned in my morning forecast. I marked the scenario in which I would enter long positions on the chart using blue lines.

After EUR/USD returned to the area below the 1.2149 level in the afternoon, it was also not possible to enter the bear market in time for a similar reason. And the deprivation of consolidation below 1.2110 resulted in creating a convenient sell signal, but I did not wait for a major fall in the pair.

First of all, the bulls need to regain control over the resistance level of 1.2048, which they missed yesterday afternoon. Consolidation and being able to test this level from top to bottom creates a signal to open long positions in anticipation of the EUR/USD recovery to the resistance area of 1.2084, where I recommend taking profits. Moving averages also pass there, playing on the side of sellers. Bulls will still aim for 1.2125, which will not be so easy to reach, since there is no reason for the euro to rise, and also because there is no important fundamental report on the eurozone that could contribute to growth. If EUR/USD is under pressure in the first half of the day, and the bulls cannot do anything with the resistance of 1.2048, then it is best to hold back from long positions until the test of the larger support of 1.2003, from which you can buy the euro immediately on a rebound, counting on an upward correction at 15 -20 points within the day. If there is no upward movement from this level, then I recommend postponing long positions until the 1.1952 low has been tested.

To open short positions on EUR/USD, you need: It is best to open short positions in the morning after forming a false breakout in the resistance area of 1.2048, which creates a good entry point to sell the euro in anticipation of falling to the support area of 1.2003, where I recommend taking profit.

An equally important task for sellers will be a breakout and consolidation below this level closer to the afternoon, testing it from the bottom up will create a new entry point into short positions (similar to yesterday), counting on a larger downward movement of the pair towards the 1.1952 low.The 1.1921 level will be a distant target. If the bears are not active in the 1.2048 area in the morning, and the European Central Bank reports from the monetary policy meeting manage to surprise traders with interesting information, then it is best to hold back from short positions until a test of the larger resistance at 1.2084, from which EUR/USD can be sold only if a false breakout is formed. Moving averages that play on the side of the bears also pass there. It is best to open short positions immediately on a rebound from the high of 1.2125, counting on a downward correction of 20-25 points within the day.




The EUR/USD Price Prediction 2022. The Bulls or the Bears, Who Will Prevail?
The EUR/USD Price Prediction 2022. The Bulls or the Bears, Who Will Prevail?

Euro/US Dollar (EUR/USD), for which we will provide the price forecast for the year 2022, is the most actively traded currency pair on the foreign exchange market, also known as Forex or FX...

2 Dec 2021

The greenback remains calm
The greenback remains calm

EURUSD is rather calm on Thursday; the pair is waiting for the news. The major currency pair reached stability while waiting for the news. The current quote...

2 Dec 2021

EURUSD is "seasick"
EURUSD is "seasick"

EURUSD will have to consider an earlier reduction of the US QE programme. The major currency pair reached stability on Wednesday after "rolling in rough weather" the day...

1 Dec 2021

The demand in the greenback is increasing
The demand in the greenback is increasing

After making a short pause on Friday, EURUSD is falling again. The major currency pair is under pressure again after a short break. The current quote for the instrument...

29 Nov 2021

The Euro's oversold is a sign for more volatility to come
The Euro's oversold is a sign for more volatility to come

The Euro fell against the dollar to 1.1200, a new 16-month low, having lost more than 4% in the last four weeks. The downward trend in the single currency accelerated...

26 Nov 2021

EURUSD is knocked out again
EURUSD is knocked out again

After testing another “bottom”, the major currency pair is consolidating. EURUSD continued falling and tested another low yesterday; right now, it is consolidating....

25 Nov 2021

HotForex information and reviews
XM information and reviews
FXCM information and reviews
AvaTrade information and reviews
LegacyFX information and reviews
FP Markets information and reviews
FP Markets

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.