Wednesday, January 25, 2017

EUR/USD: general review | FX Signals

EUR/USD: general review | FX Signals

EUR/USD: general review25 January 2017, 11:22


Scenario
TimeframeIntraday
RecommendationSELL STOP
Entry Point1.0690
Take Profit1.0665, 1.0622
Stop Loss1.0720
Key Levels1.0622, 1.0665, 1.0697, 1.0774, 1.0817, 1.0872
Alternative scenario
RecommendationBUY STOP
Entry Point1.0780
Take Profit1.0817, 1.0872
Stop Loss1.0744
Key Levels1.0622, 1.0665, 1.0697, 1.0774, 1.0817, 1.0872
Current trend
Yesterday the EUR/USD pair hit the highs at 1.0774, but in the afternoon it began to decline quite rapidly. Despite the fact that both in the Eurozone and the US ambiguous statistics were published, investors expressed a preference for the US currency. In the Eurozone weak data on the index of business activity in the services sector by Markit were released, showing a decline to 53.6 points in January from 53.7 points a month earlier. On the other hand, the index of business activity in the manufacturing sector rose to 55.1 points in January from 54.9 points a month earlier. The US PMI Markit index in the manufacturing sector rose to 55.1 points in January from 54.3 points a month earlier, while sales in the secondary housing market fell by 2.8%.
Today, the macroeconomic calendar will provide us with data on the index of business optimism in Germany by IFO (11:00 GMT+2). It is predicted that the index will rise to 111.3 points in January from 111.0 points a month earlier. Confirmation of the forecasts can support the exchange rate of EUR/USD and lead to an increase to the area of ​​1.0759.
Support and resistance
On the 4-hour chart Bollinger bands are directed sideways, indicating the relative calm in the market. The MACD histogram is in the positive zone, its volumes are decreasing.
Support levels: 1.0697, 1.0665, 1.0622.
Resistance levels: 1.0774, 1.0817, 1.0872.
Trading tips
In the current situation, short positions can be opened below the 1.0697 level with the targets at 1.0665, 1.0622 and stop loss at 1.0720.
Positions to buy can be opened above the level of 1.0774 with the targets at 1.0817, 1.0872 and stop loss at 1.0744.