Mar 26, 2020, 1:16:35 PM

EUR/USD: general review

Current trend

This week, the pair was growing and currently has reached 1.0945.

The US currency came under pressure after the introduction of the US Federal Reserve unlimited QE program. The USD 2 trillion package of economic support measures agreed by the Senate yesterday could not strengthen the US currency, as investors fear a serious deterioration in the labor market. Today, data on initial jobless claims for the past week will be published, and the market fears their serious growth due to the coronavirus epidemic.  In the Eurozone, the economic situation is also deplorable: March's business activity indicators are deep in the stagnation zone, and the German Ifo business climate index showed the lowest rate since the 1990s at 86.1 points. A certain hope of the European investor is inspired by the reduction in the number of Italian citizens newly infected with coronavirus for the fourth day in a row, which suggests that the peak of the epidemic is gone.

Support and resistance

The price tends to the midline of Bollinger bands near 1.1045. After its breakout, growth can continue to the central level of Murrey at 1.1230 (Murrey [4/8]). The breakdown of 1.0864 (Murrey [1/8]) will give the prospect of a decline to the levels of 1.0742 (Murrey [0/8]) and 1.0620 (Murrey [−1/8]). Stochastic reversing upwards and the reduction of MACD histogram in the negative zone confirm continued growth.

Resistance levels: 1.1045, 1.1108, 1.1230.

Support levels: 1.0864, 1.0742, 1.0620.

Trading tips

Long positions may be opened from the current level with targets at 1.1045, 1.1230 and stop-loss at 1.0890.

Short positions may be opened below 1.0864 with targets at 1.0742, 1.0620 and stop-loss at 1.0950.

Implementation period: 4-5 days.

Scenario

  • Timeframe

    Weekly

  • Recommendation

    BUY

  • Entry Point

    1.0952

  • Take Profit

    1.1045, 1.1230

  • Stop Loss

    1.0890

  • Key Levels

    1.0620, 1.0742, 1.0864, 1.1045, 1.1108, 1.1230

Alternative scenario

  • Timeframe

    Weekly

  • Recommendation

    SELL STOP

  • Entry Point

    1.0860

  • Take Profit

    1.0742, 1.0620

  • Stop Loss

    1.0950

  • Key Levels

    1.0620, 1.0742, 1.0864, 1.1045, 1.1108, 1.1230

Tifia trading account

Open

EUR/USD analysis for today.