EUR/USD: general review😉25/1/2019

Current trend

EUR fell against USD on Thursday amid weak PMI data in the euro area and the ECB’s decision to leave interest rates unchanged at 0.00%.Manufacturing PMI of the euro area fell to 50.5 points against 51.4 points last month, and Services PMI was 50.8 points against the previous value of 51.2 points.Statistics from the US released yesterday supported USD. Manufacturing PMI increased to 54.9 points in January from 53.8 a month earlier. Initial jobless claims dropped to 199K from 212K a week earlier. Services PMI was better than the forecast of 54.0 points, but dropped to 54.2 points in January from 54.4 points a month earlier.Today, investors are waiting for the publication of data on German Ifo Business Climate Index. The indicator is expected to fall to 100.7 points in January from 101.0 points a month earlier. In the USA, the data on Durable Goods Orders will be released today at 15:30 (GMT+2). It is expected that the indicator will rise to 1.8% in December from –4.3% a month earlier.

Support and resistanceOn the H4 chart, a downward movement correction is observed; the pair is trading between the center and lower borders of Bollinger Bands. MACD histogram is in the negative zone keeping a signal for the opening of short positions.Resistance levels: 1.1335, 1.1350, 1.1373, 1.1395, 1.1409.Support levels: 1.1308, 1.1287, 1.1266, 1.1242, 1.1215.

Trading tips

Short positions may be opened from the level of 1.1285 with target at 1.1215 and stop loss at 1.1320.Long positions may be opened from the level of 1.1350 with target at 1.1409 and stop loss at 1.1320.Implementation time: 1-3 days.

Euro vs US Dollar

BuySellSpread1.141821.141622

Scenario

TimeframeDay's RangeRecommendationsSELLEntry Point1.1323Take Profit1.1215Stop Loss1.1345Support levels1.1215, 1.1242, 1.1266, 1.1287, 1.1308, 1.1335, 1.1350, 1.1373, 1.1395, 1.1409

Alternative scenario

RecommendationsBUY STOPEntry Point1.1350Take Profit1.1409Stop Loss1.1320Support levels1.1215, 1.1242, 1.1266, 1.1287, 1.1308, 1.1335, 1.1350, 1.1373, 1.1395, 1.1409