Current trend
EUR remains under pressure due to possible escalation of the US-China trade war and weak euro area's GDP data.
In Q3 2018, GDP in the euro area slowed growth from 0.4% to 0.2% QoQ and from 2.2% to 1.7% YoY. Investors are also worried by the US government's intention to impose duties on the remaining Chinese imports worth about USD 257B. The new duties may come into force if the November meeting of US President Donald Trump and Chinese President Xi Jinping at the G20 summit ends without result.
The negative retail sales statistics was released today in Germany. In September, the figure rose by 0.1%, instead of the expected 0.5%. YoY, the index decreased by 2.6%. During the day, the market is waiting for the publication of the October data on inflation in the eurozone. It is expected that CPI will remain at the level of 2.1%, and Core CPI may increase from 0.9% to 1.0%.
Support and resistance
Now the price has fallen below 1.1352 (Murrey ) and may continue to decline to 1.1291 (Murrey ) and 1.1230 (Murrey ). A breakout of 1.1413 (Murrey ) may cause an increase to 1.1474 (Murrey , the center line of Bollinger Bands) and 1.1535 (Murrey ). However, the decline looks preferable, since Bollinger Bands are directed downwards, and the MACD histogram is increasing in the negative zone. Stochastic is near the oversold zone and is in lateral movement.
Resistance levels: 1.1352, 1.1413, 1.1474, 1.1535.
Support levels: 1.1291, 1.1230.
Trading tips
Sell positions may be opened from 1.1335 with targets at 1.1291, 1.1230 and stop loss at 1.1380.
Buy positions may be opened above 1.1413 with targets at 1.1474, 1.1535 and stop loss at 1.1380.
Implementation period: 4–5 days.
Scenario
Timeframe Weekly
Recommendation SELL STOP
Entry Point 1.1335
Take Profit 1.1291, 1.1230
Stop Loss 1.1380
Key Levels 1.1230, 1.1291, 1.1352, 1.1413, 1,1474, 1.1535
Alternative scenario
Recommendation BUY STOP
Entry Point 1.1420
Take Profit 1.1474, 1.1535
Stop Loss 1.1380
Key Levels 1.1230, 1.1291, 1.1352, 1.1413, 1,1474, 1.1535
EUR remains under pressure due to possible escalation of the US-China trade war and weak euro area's GDP data.
In Q3 2018, GDP in the euro area slowed growth from 0.4% to 0.2% QoQ and from 2.2% to 1.7% YoY. Investors are also worried by the US government's intention to impose duties on the remaining Chinese imports worth about USD 257B. The new duties may come into force if the November meeting of US President Donald Trump and Chinese President Xi Jinping at the G20 summit ends without result.
The negative retail sales statistics was released today in Germany. In September, the figure rose by 0.1%, instead of the expected 0.5%. YoY, the index decreased by 2.6%. During the day, the market is waiting for the publication of the October data on inflation in the eurozone. It is expected that CPI will remain at the level of 2.1%, and Core CPI may increase from 0.9% to 1.0%.
Support and resistance
Now the price has fallen below 1.1352 (Murrey ) and may continue to decline to 1.1291 (Murrey ) and 1.1230 (Murrey ). A breakout of 1.1413 (Murrey ) may cause an increase to 1.1474 (Murrey , the center line of Bollinger Bands) and 1.1535 (Murrey ). However, the decline looks preferable, since Bollinger Bands are directed downwards, and the MACD histogram is increasing in the negative zone. Stochastic is near the oversold zone and is in lateral movement.
Resistance levels: 1.1352, 1.1413, 1.1474, 1.1535.
Support levels: 1.1291, 1.1230.
Trading tips
Sell positions may be opened from 1.1335 with targets at 1.1291, 1.1230 and stop loss at 1.1380.
Buy positions may be opened above 1.1413 with targets at 1.1474, 1.1535 and stop loss at 1.1380.
Implementation period: 4–5 days.
Scenario
Timeframe Weekly
Recommendation SELL STOP
Entry Point 1.1335
Take Profit 1.1291, 1.1230
Stop Loss 1.1380
Key Levels 1.1230, 1.1291, 1.1352, 1.1413, 1,1474, 1.1535
Alternative scenario
Recommendation BUY STOP
Entry Point 1.1420
Take Profit 1.1474, 1.1535
Stop Loss 1.1380
Key Levels 1.1230, 1.1291, 1.1352, 1.1413, 1,1474, 1.1535