EUR/USD Technical Analysis | EUR/USD Trading: 2018-04-06 | IFCM India
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EUR/USD Technical Analysis - EUR/USD Trading: 2018-04-06

Slowing euro-zone economic expansion bearish for EURUSD

Euro-zone’s composite PMI and German factory orders were lower than expected. Will the EURUSD continue declining?

Euro-zone’s composite Purchasing Managers’ Index slipped from 55.3 to 55.2 in March. Separately retail sales in the region and German factory orders rose less than expected in February. Slowing of expansion in euro-zone services activities and in manufacturing sector of euro-zone’s biggest economy are bearish for euro.

EURUSD

On the daily timeframe EURUSD is retracing after it hit 4-year high in February. It has fallen below 50-day moving average MA(50).

We believe the bearish momentum will continue after the price breaches below the lower Donchian boundary at 1.2217. A price point below that level can be used as an entry point for a pending order to sell. The stop loss can be placed above the upper Donchian bound at 1.2476. After placing the pending order the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop-loss level (1.2476) without reaching the order we recommend cancelling the order: the market sustains internal changes which were not taken into account.

Technical Analysis Summary

PositionSell
Sell stop Below 1.2217
Stop loss Above 1.2476

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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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