Current trend
Yesterday, EUR strengthened against USD, despite macroeconomic data favorable to the American economy. October Markit Service PMI rose to 54.8 points, exceeding the forecast of 54.7 points. ISM Service PMI also outperformed the forecast, reaching 54.9 points against the forecast of 54.8. Composite Markit PMI fell by 1.3 points against the previous value but was better than expected, reaching 60.3 points.
Market participants are preparing for the upcoming Congressional midterm elections. If the Republicans fail to hold the House of Representatives, then President Trump’s position may deteriorate. Probably, representatives of the Democratic Party will impede the implementation of the economic plans of the current administration, as well as be able to raise the issue of impeachment. The investors are also focused on the trade conflict between the United States and China.
Today, traders are waiting for the EU Service PMI release. According to forecasts, in October the indicator will remain at the same level of 53.3 points.
Support and resistance
On the 4-hour chart, the pair is moving sideways within a corridor formed by the upper border and the middle line of Bollinger bands. MACD histogram is in the positive region, generating a signal to open long positions.
Resistance levels: 1.1430, 1.1460, 1.1490, 1.1515, 1.1550, 1.1600, 1.1630.
Support levels: 1.1410, 1.1395, 1.1380, 1.1355, 1.1330, 1.1300.
Trading tips
Long positions can be opened from the current level with the target at 1.1460 and stop loss 1.1380. Implementation period: 1–3 days.
Short positions can be opened from the level of 1.1350 with the target at 1.1300 and stop loss 1.1380. Implementation period: 3–5 days.
Scenario
Timeframe Intraday
Recommendation BUY
Entry Point 1.1417
Take Profit 1.1460
Stop Loss 1.1380
Key Levels 1.1300, 1.1330, 1.1355, 1.1380, 1.1395, 1.1410, 1.1430, 1.1460, 1.1490, 1.1515, 1.1550, 1.1600, 1.1630
Alternative scenario
Recommendation SELL STOP
Entry Point 1.1350
Take Profit 1.1300
Stop Loss 1.1380
Key Levels 1.1300, 1.1330, 1.1355, 1.1380, 1.1395, 1.1410, 1.1430, 1.1460, 1.1490, 1.1515, 1.1550, 1.1600, 1.1630
Yesterday, EUR strengthened against USD, despite macroeconomic data favorable to the American economy. October Markit Service PMI rose to 54.8 points, exceeding the forecast of 54.7 points. ISM Service PMI also outperformed the forecast, reaching 54.9 points against the forecast of 54.8. Composite Markit PMI fell by 1.3 points against the previous value but was better than expected, reaching 60.3 points.
Market participants are preparing for the upcoming Congressional midterm elections. If the Republicans fail to hold the House of Representatives, then President Trump’s position may deteriorate. Probably, representatives of the Democratic Party will impede the implementation of the economic plans of the current administration, as well as be able to raise the issue of impeachment. The investors are also focused on the trade conflict between the United States and China.
Today, traders are waiting for the EU Service PMI release. According to forecasts, in October the indicator will remain at the same level of 53.3 points.
Support and resistance
On the 4-hour chart, the pair is moving sideways within a corridor formed by the upper border and the middle line of Bollinger bands. MACD histogram is in the positive region, generating a signal to open long positions.
Resistance levels: 1.1430, 1.1460, 1.1490, 1.1515, 1.1550, 1.1600, 1.1630.
Support levels: 1.1410, 1.1395, 1.1380, 1.1355, 1.1330, 1.1300.
Trading tips
Long positions can be opened from the current level with the target at 1.1460 and stop loss 1.1380. Implementation period: 1–3 days.
Short positions can be opened from the level of 1.1350 with the target at 1.1300 and stop loss 1.1380. Implementation period: 3–5 days.
Scenario
Timeframe Intraday
Recommendation BUY
Entry Point 1.1417
Take Profit 1.1460
Stop Loss 1.1380
Key Levels 1.1300, 1.1330, 1.1355, 1.1380, 1.1395, 1.1410, 1.1430, 1.1460, 1.1490, 1.1515, 1.1550, 1.1600, 1.1630
Alternative scenario
Recommendation SELL STOP
Entry Point 1.1350
Take Profit 1.1300
Stop Loss 1.1380
Key Levels 1.1300, 1.1330, 1.1355, 1.1380, 1.1395, 1.1410, 1.1430, 1.1460, 1.1490, 1.1515, 1.1550, 1.1600, 1.1630