During the last sessions trades on majors are quite active. At the same time, a unidirectional trend is not observed. The dollar index (#DX) is consolidating near monthly lows. Over the past week, a key range of 96.90-97.20 has been formed. The greenback is under pressure due to the escalation of the trade conflict between the US and China. It should be recalled that Donald Trump increased duties on Chinese imports from 10% to 25% $200 billion worth. On Monday, May 13, Beijing retaliated and announced the introduction of additional duties $60 billion worth a year. At the moment, financial market participants expect additional drivers.
This week important economic releases from the US will be published, which will have an impact on the future alignment of forces on majors in the short term.
We recommend paying attention to the Philadelphia Fed manufacturing index and statistics on the real estate market, which will be published on Thursday (15:30 GMT+3:00). This index determines the economic well-being of the manufacturing sector of the Philadelphia federal district and has a rather strong influence on the dynamics of the US currency. Experts expect that in May, the figure will accelerate from 8.5 to 9.0. We recommend taking into account the difference between actual and forecasted values.
Let’s consider the current technical pattern on the EUR/USD currency pair
- Support levels: 1.12000, 1.11600, 1.11200
- Resistance levels: 1.12600, 1.13000, 1.13250
- - 50 MA has crossed 200 MA;
- - the MACD histogram is in the positive zone, but below the signal line.
At the moment, the EUR/USD currency pair is in a sideways trend. The technical pattern is ambiguous. The trading instrument is testing the key support and resistance levels: 1.12000 and 1.12600, respectively. Indicators do not send accurate signals:
We recommend opening positions from the key levels.
If the statistics from the US turn out to be positive, a fall in the EUR/USD quotes is expected. The movement is tending to 1.11600-1.11200.
An alternative could be the growth of the EUR/USD currency pair to the round level of 1.13000.
Confirmations and entry points to the market should be looked for on lower timeframes. When tracking positions, we recommend using a trailing stop.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.Open Account