Euro/dollar: today’s situation is 50/50

Posted On 20 Jul 2016

Previous:

What was expected to be seen on the euro on Wednesday was done on Tuesday. The US stats continue to stand on the side of the dollar bulls. The US housing market exceeded expectations. The number of construction permits and foundations lain in June rose.

The euro/dollar dropped 80 points to 1.0999. Meanwhile the GBP lost around two figures. The euro weakened to a lesser extent due to it strengthening in the euro/pound cross.

Market Expectations:

The current situation on the hourly is contradictory. On the one hand an inverted pattern is forming for a revival of the euro to 1.1050. On the other hand, the weakening of the euro could hasten to 1.0980 and below. The fall stopped at 8^th July minimum (1.0996). If the euro/dollar exceeds 1.1022 over the course of two hours after trade opening in Europe, we could see a forecast for a strengthening to 1.1050.

Day”s News (EET):

09:00, German June producer price data;
11:00, Eurozone May balance of payment;
11:30, UK average salary changes index, unemployment benefit applications and unemployment level in May;
12:00, Swiss index for economic expectations in June from ZEW;
17:00, Eurozone July consumer confidence;
17:30, US changes in oil reserves for week ending 17^th July.

Technical Analysis:

Intraday forecast: minimum: n/a, maximum: n/a, close: n/a.

Euro/dollar rate on the hourly. Source: TradingView

Since the last 4-hour candle isn”t closed, we need to make two scenarios. On the 4H a pinbar has formed. More precisely: a double bottom from two pinbars. You can see it better on the hourly.

If the euro/dollar exceeds 1.1022 within the two hours after trade opening in Europe, the forecast for a rise to 1.1050 will be activated. I don”t see how it could go higher since tomorrow will see the ECB convene and Draghi speak.

If the bulls don”t manage to pass the level indicated, the risks of a slide along the red scenario to 1.0980 will persist.

Source:: Euro/dollar: today’s situation is 50/50

About the Author

Alpari was founded in 1998 and is one of the world’s leading Forex brokers, offering clients a full package of the most modern financial instruments and technological solutions for online trading and investment. According to data from Finance Magnates, Alpari has been one of the largest Forex brokers in the world for a number of years. The trading turnover of the Alpari companies in 2014 was 2.5 trillion USD. Today Alpari is the world’s largest MetaTrader 4 Forex broker. The first half of 2015 saw company branches offering their services to over one million clients from over 150 countries in the world. Alpari clients have access to over 50 currency pairs and an extensive range of other instruments. The company offers the use of three trading platforms for computer and mobile applications for use with iOS and Android. Alpari is a member of international organizations such as The Financial Commission (Hong Kong) and CRFIN (Russia). Bonuses: the Alpari Bonus Program was launched in 2014 and allows clients to independently change their conditions for working on the financial market: reduce commission, save money on swaps, improve conversion rates and much more. Read More about Alpari HERE or you can visit their website direct by CLICKING HERE..