EURUSD: Pair Shifting to Trend Line

Posted On 23 May 2016

Yesterday”s Trading:

On Friday the euro/dollar renewed to 1.1237. The pair ditched the session maximum after US secondary market housing sales for April showed a 1.7% rise to 5.45 million homes. On this news the euro returned to 1.12. The trading session closed near the balance line (simple average line).

Market Expectations:

On Monday the bulls have shifted Friday”s maximum to 1.1242. Asian activity is decent, only the trend line runs through 1.1252. It won”t be passed first time. It needs help from the euro/pound cross. A small correction is needed on it to offload the indicators after Friday”s growth.

Since the euro ended up sideways on Friday, today I expect to see it go to 79 points as part of the candle. I am inclined to believe we will see a break in the trend line during the American session and a strengthening of the euro to 1.1284.

Day”s News (EET):

10:00-11:00, Eurozone, German and French PMIs in the manufacturing and service sectors;
13:15, FOMC member Bullard to speak;
15:00, FOMC member Williams to speak;
16:45, US preliminary business activity index in manufacturing for May;
17:00, Eurozone May consumer confidence;
17:30, Australian index for leading indicators from CB for March.

Technical Analysis:

Intraday forecast: minimum: 1.1205, maximum: 1.1284, close: 1.1262.

Euro/dollar rate on the hourly. Source: TradingView

On Friday the euro spent 2/3 of the time near the balance line. I”ve made an upwards channel for a correctional movement from the 1.1179 minimum. There”s a strong resistance forming at the intersection of the upper line of the channel and the trend line: 1.1253. I think the bulls will drop to it in the first half of the day. Then it”s necessary to wait out a few hours under the trend line so that the oscillator stochastic can return to the 50% zone.

According to the 90^th degree, today”s target is 1.1284. The 90^th degree isn”t an important resistance level for the euro/dollar, so the stops could be blown off with a gentle breeze and we”d be at 1.13.

Source:: EURUSD: Pair Shifting to Trend Line

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..