EUR/USD: general analysis

Current trend

Since the beginning of the year, the EUR/USD pair has been under strong pressure from a number of factors, reaching the November lows of last year near 1.1000. The main reason for the decline is the continued strengthening of USD against most major currencies. Today, investors wait for the Fed's Interest Rate Decision. During this month, there were opinions regarding a possible easing of monetary policy, however, the current high positions of the national currency indicate the opposite, and the rate is likely to stay the same.

Another negative factor for the instrument is the poor EU economic data. The German business climate index for January fell to 95.9, which is worse than expected 97.0. The business expectations index also decreased and amounted to 92.9, which is much worse than the expected 95.0. Data on unemployment in Germany and the EU will be released tomorrow, and if they turn out to be worse than expected, the pair may enter a long decline cycle.

Support and resistance

The correction pattern "triangle" was implemented, and the price, breaking the support line, continued the global downtrend. The Alligator indicator gave a clear sell signal, which was confirmed by the AO oscillator. In case of breaking the local minimum, the global sell position will become relevant.

Resistance levels: 1.1120, 1.1230.

Support levels: 1.0990, 1.0880.

Trading tips

After decline or consolidation below the local minimum and the support line around 1.0990, it is better to open sell positions with a target at 1.0880. Stop loss is above the local minimum, around 1.1070.

After a reversal and growth or consolidation above 1.1120, buy positions with the target at 1.1230 will be relevant. Stop loss is below the support line, around 1.1060.

Implementation period: 5 days.

Scenario

  • Timeframe

    Weekly

  • Recommendation

    SELL STOP

  • Entry Point

    1.0990

  • Take Profit

    1.0880

  • Stop Loss

    1.1070

  • Key Levels

    1.0880, 1.0990, 1.1120, 1.1230

Alternative scenario

  • Timeframe

    Weekly

  • Recommendation

    BUY STOP

  • Entry Point

    1.1120

  • Take Profit

    1.1230

  • Stop Loss

    1.1060

  • Key Levels

    1.0880, 1.0990, 1.1120, 1.1230

Tifia trading account

Open

EUR/USD analysis for today.