Magdalinin: trade on EUR /USD

Maxim Magdalinin


The European currency continues to lose ground rapidly against the US dollar due to differences on the policy of the monetary system in the US and the Eurozone. Technically, the pair reached the psychologically important level of 1.0800 where bulls are trying to form a reverse referance point for the formation of upward correction for the pair. But despite all this, the candle Heiken Ashi indicator continues to draw a large red candles, in which sellers are.


To open a long position on EUR/USD is required:


Correction EUR/USD can be begun at any time, as according to the indicator Bull – the buyers enter the market gradually, and the current lows almost  coincide with the lower boundary of the descending channel yellow R1. If bulls retain the current minimum, it is likely that the first goal will be the correctional 1.0863 area, where short-term profit-taking will be visible. Another, more serious purpose, will be the area of 1.0960, which coincides with the 23.6% Fibo level, where the activity of new big sellers of euros will be also noticeable. A key challenge for the correction of EUR / USD at the "Long" is a return to strong resistance figure 1.1050, just below which there is 38.2% Fibo level.


To open a short position on EUR/USD is required:

Now bears have nervous phase gradually coming where any sudden movement of the currency pair-up will lead to mass demolition of Stop orders and more confident correction, after which the market will be come out by large retailers that will provoke even greater rebound of the pair up.


"Shorts" are need to be fixed under the psychological support level 1.0800 and break through the lower boundary of the descending yellow channel, that will open the way to new yearly lows near 1.0708 and 1.0648. But once again it should be noted that for the breakdown of this level a good amount is required that can be formed only with a new portion of positive fundamental data on the US economy. Otherwise, all that sellers will be able to achieve is just another pair locking in the side channel with the  upper limit of 1.0863.


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