The lower limit of the range as an excuse for EURUSD purchases

EURUSD fell to the lower limit of its medium-term range 1.1550-1.1740. One of this fact is enough to recommend its purchase, especially in summer trading conditions, when currency pairs tend to move in clearly delineated ranges without an explicit pronounced trend. From the current points, the profit / stop ratio is almost perfect. By placing stops below 1,1500 and placing profits in the upper 1.1740 area, we get a potentially excellent deal (about 200 profit points against 50 with a small stop, that is, a ratio of almost 4 to 1). The main condition for its success is keeping the bulls at the euro support 1,1550. At this point, we want to dwell in more detail.
As usual we will look at the situation at two angles: technical and fundamental.

From the point of view of fundamental analysis, he did not use the dollar's chance of publishing excellent data on US GDP, but the NFP figures just help local fixation of profits in the 1.1550 area with the subsequent growth of the EURUSD pair. Recall last Friday, the increase in new jobs in the US outside agriculture was + 157K with a forecast of + 190K. That is, the data were significantly weaker than the expectations of experts and markets. That is an excuse for expectations that the support of 1,1550 will stand.

As for the technical picture, for more than two months the pair EURUSD has fluctuated in a rather narrow range of 1.1550-1.1740. So, the indications of trend indicators are useless to use - they will constantly generate false signals: the averages will often change direction and intersect, the lines DM- / DM + of the trend indicator ADX will behave in a similar way. So, it's ideal for work to use the oscillator readings. The classic oscillator RSI on the daily chart just approached the oversold zone. What is in itself an excuse for pair shopping.

As you can see, there are neither technical nor fundamental contra-indications for the purchases of the EURUSD pair. But the testimony in the form of the lower boundary of the medium-term range and local oversold of the pair are on the contrary. Therefore, we recommend the opening of long positions at current prices with stops below 1.1500 and profits in the region of 1.1740.