EURUSD - buy on rumors, sell on facts:
Good afternoon, dear reader!
Commentary on the current situation:
The currency pair was in great demand over the past trading week, taking interest in the proposals of France and Germany on a stabilization fund of 500 billion euros and possibly on the introduction of coronabond.
Investors evaluate this sign as a step towards the fiscal union - the European Confederation.
It is these rumors, the upcoming meeting of the Eurogroup, more positive macroeconomic data compared with the United States, huge liquidity from the Federal Reserve. The reasons for the euro's growth are one on one.
We recommended for the purchase of euros last week.
Results of the week: An increase of 0.77% or +83 points.
Technical analysis:
H1 (Technical) -H4 (indicative)
The chart has formed a new trend up, which has a higher slope, and holding above 1.0880 allows you to judge higher goals.
Euro has a global uptrend (blue).
An important resistance for the euro is the psychological mark of 1.1000 and the inability of the pair to overcome it for the third time can lead to a serious correction.
= ≥ The conclusion from the technical analysis is that as long as the pair continues to hold above 1.0880, the euro will be able to attempt growth to 1.1000-1.1050.
If the currency pair closes below 1.0880, the next target will be 1.0860. However, if this mark is overcome, the euro will go down to 1.0800.
Indicative analysis provides the following information:
Lack of oversold assets on 1-hour and 4-hour time frames (located in the neutral zone).
2. The price behavior indicator shows that the price has normalized with respect to its average 4-day trend (neutral zone).
! Attention, indicator data on the hourly chart show reversal patterns.
Price behavior scenarios:
A) The most probable, we consider the pair to rise to 1.1000, and if it consolidates above, to 1.1050.
B) An alternative scenario - the currency pair will begin consolidation and close below 1.0880, in this case, the trend will change and we will see a correction to 1.0860, 1.0800.
Global Variables:
On the global chart, it is clearly seen how the euro / dollar overcame the downtrend of March 30 and is now retesting this trend.
• Volatility (ATR): Weekly = 77 points // Monthly = 90 points // Quarterly = 79 points.
• Trends (SMA): Continuation of the downtrend, 55 - day average is below 100 - day, and 100 - day in turn is below 200 - day.
• Range Ratio: 204 points (Growth from 118 points).
Recommendations:
We recommend purchases with a short stop at 1.0860, however, the position will be fixed if the up-trend is completed.
Regards to subscribers,
Wermelgion & Partners Invest.
Profitability of WMCI Asset Management Fund + 14.43% for May;
Profitability of HMS Royal Oak + 14.53% for May;[/I]
!Attention: Trading financial instruments and (or) cryptocurrencies is fraught with high risks, including the risk of losing part or all of the investment, therefore it is not suitable for all investors. Cryptocurrency prices are extremely volatile and can change due to external factors such as financial news, legislative decisions or political events. Margin trading leads to increased financial risks.
Ltd ”Wermelgion & Co” and any provider of the data contained on this website disclaim liability for any loss or loss incurred as a result of trading transactions made with reference to the information provided.
Commentary on the current situation:
The currency pair was in great demand over the past trading week, taking interest in the proposals of France and Germany on a stabilization fund of 500 billion euros and possibly on the introduction of coronabond.
Investors evaluate this sign as a step towards the fiscal union - the European Confederation.
It is these rumors, the upcoming meeting of the Eurogroup, more positive macroeconomic data compared with the United States, huge liquidity from the Federal Reserve. The reasons for the euro's growth are one on one.
We recommended for the purchase of euros last week.
Results of the week: An increase of 0.77% or +83 points.
Technical analysis:
H1 (Technical) -H4 (indicative)
The chart has formed a new trend up, which has a higher slope, and holding above 1.0880 allows you to judge higher goals.
Euro has a global uptrend (blue).
An important resistance for the euro is the psychological mark of 1.1000 and the inability of the pair to overcome it for the third time can lead to a serious correction.
= ≥ The conclusion from the technical analysis is that as long as the pair continues to hold above 1.0880, the euro will be able to attempt growth to 1.1000-1.1050.
If the currency pair closes below 1.0880, the next target will be 1.0860. However, if this mark is overcome, the euro will go down to 1.0800.
Indicative analysis provides the following information:
Lack of oversold assets on 1-hour and 4-hour time frames (located in the neutral zone).
2. The price behavior indicator shows that the price has normalized with respect to its average 4-day trend (neutral zone).
! Attention, indicator data on the hourly chart show reversal patterns.
Price behavior scenarios:
A) The most probable, we consider the pair to rise to 1.1000, and if it consolidates above, to 1.1050.
B) An alternative scenario - the currency pair will begin consolidation and close below 1.0880, in this case, the trend will change and we will see a correction to 1.0860, 1.0800.
Global Variables:
On the global chart, it is clearly seen how the euro / dollar overcame the downtrend of March 30 and is now retesting this trend.
• Volatility (ATR): Weekly = 77 points // Monthly = 90 points // Quarterly = 79 points.
• Trends (SMA): Continuation of the downtrend, 55 - day average is below 100 - day, and 100 - day in turn is below 200 - day.
• Range Ratio: 204 points (Growth from 118 points).
Recommendations:
We recommend purchases with a short stop at 1.0860, however, the position will be fixed if the up-trend is completed.
Regards to subscribers,
Wermelgion & Partners Invest.
Profitability of WMCI Asset Management Fund + 14.43% for May;
Profitability of HMS Royal Oak + 14.53% for May;[/I]
!Attention: Trading financial instruments and (or) cryptocurrencies is fraught with high risks, including the risk of losing part or all of the investment, therefore it is not suitable for all investors. Cryptocurrency prices are extremely volatile and can change due to external factors such as financial news, legislative decisions or political events. Margin trading leads to increased financial risks.
Ltd ”Wermelgion & Co” and any provider of the data contained on this website disclaim liability for any loss or loss incurred as a result of trading transactions made with reference to the information provided.
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