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04/10/2018

EUR/USD: general analysis

Today the pair continued to grow and exceeded the level of 1.2359 (Murray [5/8], H4).

The USA President Donald Trump tried to calm the market down, saying in his Twitter, that China will make concessions, that intellectual property deal will be made, and a beautiful future expects both of the counties. However, the investors have some doubts, as US Administration is preparing the new list of Chinese goods to be taxed. Chinese authorities have mentioned many times, that they did not want a trading war but will defend government interests to the last.

At the beginning of the week, there was reported that USA-China trade negotiations were deadlocked due to Washington’s demand Beijing to stop the subsidizing of the industrial sectors within the program “Made in China 2025”, as there can be used technologies, taken from US companies. Earlier Chinese authorities were ready to decrease US trade deficit by 50 billion through the import of liquefied gas, agricultural product, and luxury items.

Support and resistance

The price is tending to the level of 1.2390 (Murray [3/8]), and in case of the breakout can grow to the levels of 1.2451 (Murray [4/8]) and 1.2512 (Murray [5/8]). However, the area of 1.2390–1.2451 is at the border of the middle term trade range, which reflects the possibility of a reversal and decrease to the levels of 1.2329 (Murray [2/8], the middle line of Bollinger Bands) and 1.2207 (Murray [0/8]).

Resistance levels: 1.2390, 1.2451, 1.2512.

Support levels: 1.2329, 1.2207.

Trading tips

Long positions can be opened above the level of 1.2390 with the targets at 1.2451, 1.2512 and stop loss around 1.2360.

Short positions can be opened after the reversal of the price around the level 1.2390 with the targets at 1.2329, 1.2207 and stop loss around 1.2410.

Scenario

TimeframeWeekly
RecommendationBUY STOP
Entry Point1.2400
Take Profit1.2451, 1.2512
Stop Loss1.2360
Key Levels1.2207, 1.2329, 1.2390, 1.2451, 1.2512

Alternative scenario

RecommendationSELL LIMIT
Entry Point1.2390
Take Profit1.2329, 1.2207
Stop Loss1.2410
Key Levels1.2207, 1.2329, 1.2390, 1.2451, 1.2512
Trading Ideeën , , , , ,

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