Greetings to you, our followers!
Your attention an analytical review.
• Topic of the article: The global picture has already become negative, the local one still remains positive.
Comments last week:
Correct the currency pair from the upper boundary of the global rising channel. Despite the surge in interest in the euro after the meeting of the #ECB (#Ecb), the currency pair was not able to rise above the weekly maximum.
The strength of the pound is currently determined by the change of comments from the governors of the Bank of England (#Boe). Quite recently, bidders tuned in to negative interest rates. And already this week, traders received information from the Bank of England Executive Director for Markets that this measure will not be applied in the near future.
"The general weakness of the US dollar and positive comments made market participants ignore the negativity around the divorce process in Britain and the EU, and everything is not as smooth as we would like to extend this process, at least no one is ready yet."
Sergey Vokinlem
Managing WMCI Asset Management Fund
The results of the week: A decrease of 82 points.
Technical analysis:
H1 (Technical) -H4 (indicative).
At the moment, the currency pair is in a narrowing triangle, the lower High-level clearly outlined the local trend of decline, which acts as a resistance line.
The support level is the lower boundary of the global uptrend.
Indicative analysis provides the following information:
1. Overbought / oversold indicator indicates a weighted average position, thereby speaking about neutrality.
2. The price behavior indicator also demonstrates that the price is in an adequate zone with respect to the 4-day trend.
The most probable scripts (Week-2):
At the moment, there are several main scenarios in the pair:
I.
As long as the currency pair is above the lower border of the global upward channel, we can expect from the pair “2nd bottom” to develop with an initial target of 0.8960 and in case a local downtrend is broken - 0.9053. In the case of the development of such a scenario, in the medium term, we can expect to again test the currency pair the upper boundary of the ascending global channel - 0.9150.
I.I.
A currency pair may try to develop an upward movement to local resistance, however, it can be returned from this zone to the lower border of the ascending channel and further below this support.
II.
If the pair consolidates below the global rising channel, the primary goal of this movement will be 0.8850-0.8830, after which the pair will retest the lower border and continue to decline to 0.8800, in which case 0.8700 may be a long-term target.
Global Scenario (Month):
The currency pair on the daily chart formed a downward channel, if it is preserved and the pair is unable to gain a foothold above 0.9050, it opens a bearish development scenario with a maximum target of 0.9300.
If the euro manages to gain a foothold above 0.9050, this will signal a potential growth to 0.9140, 0.9280 and possibly to the maximum of this year - 0.9480.
Global Variables:
• Volatility: Weekly = 76 points // Monthly = 81 points // Quarterly = 79 points.
(Volatility inversion continues);
• Trends:
The 55-day SMA continued to decline started the year before last.
100 - day SMA still continues to grow;
The 200-day SMA continues to decline in late March;
• Range Ratio: 161 points (Decrease from 172 points).
Best regards to followers,
"Wermelgion & Partners"
!Attention: Trading financial instruments and (or) cryptocurrencies is fraught with high risks, including the risk of losing part or all of the investment, therefore it is not suitable for all investors. Cryptocurrency prices are extremely volatile and can change due to external factors such as financial news, legislative decisions or political events. Margin trading leads to increased financial risks.
Ltd ”Wermelgion & Co” and any provider of the data contained on this website disclaim liability for any loss or loss incurred as a result of trading transactions made with reference to the information provided.
Your attention an analytical review.
• Topic of the article: The global picture has already become negative, the local one still remains positive.
Comments last week:
Correct the currency pair from the upper boundary of the global rising channel. Despite the surge in interest in the euro after the meeting of the #ECB (#Ecb), the currency pair was not able to rise above the weekly maximum.
The strength of the pound is currently determined by the change of comments from the governors of the Bank of England (#Boe). Quite recently, bidders tuned in to negative interest rates. And already this week, traders received information from the Bank of England Executive Director for Markets that this measure will not be applied in the near future.
"The general weakness of the US dollar and positive comments made market participants ignore the negativity around the divorce process in Britain and the EU, and everything is not as smooth as we would like to extend this process, at least no one is ready yet."
Sergey Vokinlem
Managing WMCI Asset Management Fund
The results of the week: A decrease of 82 points.
Technical analysis:
H1 (Technical) -H4 (indicative).
At the moment, the currency pair is in a narrowing triangle, the lower High-level clearly outlined the local trend of decline, which acts as a resistance line.
The support level is the lower boundary of the global uptrend.
Indicative analysis provides the following information:
1. Overbought / oversold indicator indicates a weighted average position, thereby speaking about neutrality.
2. The price behavior indicator also demonstrates that the price is in an adequate zone with respect to the 4-day trend.
The most probable scripts (Week-2):
At the moment, there are several main scenarios in the pair:
I.
As long as the currency pair is above the lower border of the global upward channel, we can expect from the pair “2nd bottom” to develop with an initial target of 0.8960 and in case a local downtrend is broken - 0.9053. In the case of the development of such a scenario, in the medium term, we can expect to again test the currency pair the upper boundary of the ascending global channel - 0.9150.
I.I.
A currency pair may try to develop an upward movement to local resistance, however, it can be returned from this zone to the lower border of the ascending channel and further below this support.
II.
If the pair consolidates below the global rising channel, the primary goal of this movement will be 0.8850-0.8830, after which the pair will retest the lower border and continue to decline to 0.8800, in which case 0.8700 may be a long-term target.
Global Scenario (Month):
The currency pair on the daily chart formed a downward channel, if it is preserved and the pair is unable to gain a foothold above 0.9050, it opens a bearish development scenario with a maximum target of 0.9300.
If the euro manages to gain a foothold above 0.9050, this will signal a potential growth to 0.9140, 0.9280 and possibly to the maximum of this year - 0.9480.
Global Variables:
• Volatility: Weekly = 76 points // Monthly = 81 points // Quarterly = 79 points.
(Volatility inversion continues);
• Trends:
The 55-day SMA continued to decline started the year before last.
100 - day SMA still continues to grow;
The 200-day SMA continues to decline in late March;
• Range Ratio: 161 points (Decrease from 172 points).
Best regards to followers,
"Wermelgion & Partners"
!Attention: Trading financial instruments and (or) cryptocurrencies is fraught with high risks, including the risk of losing part or all of the investment, therefore it is not suitable for all investors. Cryptocurrency prices are extremely volatile and can change due to external factors such as financial news, legislative decisions or political events. Margin trading leads to increased financial risks.
Ltd ”Wermelgion & Co” and any provider of the data contained on this website disclaim liability for any loss or loss incurred as a result of trading transactions made with reference to the information provided.
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