Yuri Papshev
Independent Analyst
At the beginning of the American session on Tuesday, the EUR/USD pair declines, reaching the first important support level 1.1845 (ЕМА200 on the 1-hour chart). Since the pair, since May of this year, has maintained a long-term positive trend, remaining within the upward channel on the daily chart (the lower border of the channel passes through the 1.1780 mark (Fibonacci level 38.2% of the upward correction in the wave of the pair's decline from 1.3870, which began in May 2014), and the upper one is near the level of 1.2180, through which the resistance level in the form of the 50% Fibonacci level passes), then it would be logical to place a buy order from this support level, i.e. "by-the-market" at the moment.
In case of further decline, another pending buy order will be appropriate near the support level of 1.1780 (ЕМА200 on the 4-hour chart).
There is a high probability of a rebound from the support levels 1.1845, 1.1784 and a return of the EUR / USD pair to an uptrend. In this case, and after the breakdown of the resistance levels 1.1960 (ЕМА144 on the monthly chart), 1.2010 (local September highs and highs of the year), 1.2075 (ЕМА200 on the monthly chart), the level of 1.2180 will become the next growth target for EUR/USD.
In the alternative scenario, EUR/USD will break through the support level of 1.1780 and head towards the support level 1.1705 (ЕМА50 on the daily chart).
Further decline in EUR/USD in the current situation is unlikely - the dollar is under pressure from strong fundamental factors.
Perhaps the only strong argument and chance for the dollar to return to an uptrend is the change in the direction of the FRS monetary policy, which is extremely unlikely in the current situation.
The dollar remains vulnerable amid the Fed's aggressively stimulating monetary policy, the progress of the coronavirus pandemic in the country, and political unrest and uncertainty ahead of the presidential election in November.
Only a return to the zone below the support levels of 1.1340 (ЕМА200 on the daily chart), 1.1285 (Fibonacci level 23.6%) will mark the resumption of the bearish trend.
Support levels: 1.1845, 1.1780, 1.1705, 1.1490, 1.1400, 1.1340, 1.1285
Resistance levels: 1.1900, 1.1960, 1.2010, 1.2075, 1.2180, 1.2340, 1.2580
Trading recommendations
Sell Stop 1.1685. Stop-Loss 1.1720. Take-Profit 1.1600, 1.1490, 1.1400, 1.1340, 1.1285
Buy by market. Buy Limit 1.1780, 1.1710. Stop-Loss 1.1685. Take-Profit 1.1900, 1.1960, 1.2010, 1.2075, 1.2180, 1.2340, 1.2580
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD retreats from daily highs, holds above 1.0800
EUR/USD loses traction but holds above 1.0800 after touching its highest level in three weeks above 1.0840. Nonfarm Payrolls in the US rose more than expected in June but downward revisions to May and April don't allow the USD to gather strength.
GBP/USD struggles to hold above 1.2800 after US jobs data
GBP/USD spiked above 1.2800 with the immediate reaction to the mixed US jobs report but retreated below this level. Nonfarm Payrolls in the US rose 206,000 in June. The Unemployment Rate ticked up to 4.1% and annual wage inflation declined to 3.9%.
Gold approaches $2,380 on robust NFP data
Gold intensifies the bullish stance for the day, rising to the vicinity of the $2,380 region following the publication of the US labour market report for the month of June. The benchmark 10-year US Treasury bond yield stays deep in the red near 4.3%, helping XAU/USD push higher.
Crypto Today: Bitcoin, Ethereum and Ripple lose key support levels, extend declines on Friday
Crypto market lost nearly 6% in market capitalization, down to $2.121 trillion. Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) erased recent gains from 2024.
French Elections Preview: Euro to “sell the fact” on a hung parliament scenario Premium
Investors expect Frances's second round of parliamentary elections to end with a hung parliament. Keeping extremists out of power is priced in and could result in profit-taking on Euro gains.