Daily forecasts

Eurusd Analysis – Pending buy order placed at .0495

Eurusd Analysis

Eurusd Analysis – Pending buy order placed at .0495

The EUR managed to find momentary support around the 1.06 handle in the early hours of London yesterday on the back of stronger-than-expected Eurozone PMI information. price managed to clock a high of 1.0636 from here, before turning bearish. Bolstered by strong us durable goods information, the EUR closed below 1.06 and found support around the H4 mid-way point 1.0550 going into the USA segment.

Shortly after, the FOMC released minutes of its latest meeting, that was largely ignored by the market, since, as far as we can see, there was little reported that investors didn’t already know. Over on the bigger picture, we can see that weekly action is currently trading within touching distance of a major support area coming in at 1.0333-1.0502. Meanwhile, thanks to yesterday’s selloff, the daily Quasimodo support at 1.0557 was consumed and has potentially opened the floodgates down to 1.0494: another Quasimodo support!

Our suggestions: On account of the above points, we’ve the H4 candles kissing support at 1.0550, the daily candles suggesting a downside move to 1.0494 and also the weekly candle positioned nearby the top edge of a support area at 1.0502. The confluence seen molded around the 1.05 handle is, at least in our book of technical setups, enough to permit a pending buy order at 1.0495 with a stop placed below the head of the daily Quasimodo formation at 1.0459.

Granted, this does mean, as we mentioned in Monday’s weekly report, buying into the present downside flow brought on by the possibility of a rate hike in Dec. However, we’re not looking for a full-blown reversal here, simply a well-planned bounce back up to the 1.0557 region as an immediate take-profit zone. information points to consider: German Ifo information at 9am. us banks will be closed today in observance of thanksgiving day.

Eurusd Analysis

About the author

Mohammad Riad

1 Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *

  • EUR/USD Fundamental Analysis: November 24, 2016

    The euro together with the greens had bounced again on Wednesday following the strengthening of the USD as it was boosted by the positive data regarding the much reinforced economy of the United States. The pair is sailing smooth during the morning session of the Asia and Europe, however, the inevitable volatility started amid the NY trading session.

    The pair tested the level of 1.0600 ahead of the announcement of the Durable Goods data which has a better-than-expected result of 1%. The positive release signaled the market to begin the USD purchase again which enabled the pair to break the 1.0600 and touched 1.0525 prior to the stabilization of the pair that settled below the 1.0550 during closing day.

    According to previous readings, the regions 1.0500 and 1.0600 is considered as a stable support for the pair which is also mentioned by profuse large banks, the aforesaid level will be the expected mark for the euro as the year ends.

    At present, the price movement emphasized a continuous softening and the Thanksgiving celebration in the United States will not become a driving force for the euro to edged high against the dollar. Technically, the signs bring no good for the EUR, in this way the single currency is kept intact and wait for a strong support which include the 1.0500, 1.0440 and 1.0440 marks until we found a much stable support.

    The latest German Ifo Business Climate caused a short period of volatility but things as of this moment remains unaffected. The price action is still on guarded and anticipates for a test within the 1.0500 level in order to recognize the final result whether this movement will progress or not.



Recommended Broker

  • New_to_Trading_Guide_300X250_XFR.gif

Watch the Video

  • XT_Video_300x250_XFR.gif