19/01/15 EURUSD rebounds from low of 1.146


As the year began with EURUSD below 1.180, the slide has not been curbed as dovish sentiments continue to add weight on the pair to go lower. Towards the end of trading last week, EURUSD rebounds from low of 1.146 to start this week just above 1.15.

Several news released last week pushed the market price of EURUSD further downwards of 280 pips to close at 1.516. The price was the lowest since Nov 2013 as it respected the support of 1.510. As the price continued to fall, ADX indicated the increase in market strength in that direction. Any counter trend trading is not advisable, be on the look out for trend continuation to enter. Several news released last week pushed the market price of EURUSD further downwards of 280 pips to close at 1.516. The price was the lowest since Nov 2013 as it respected the support of 1.510. As the price continued to fall, ADX indicated the increase in market strength in that direction. Any counter trend trading is not advisable, be on the look out for trend continuation to enter.

EURUsd 190115 D1 Last week, trend continuation was seen on Thursday where the price was seen closed below the resistance of 1.17. Throughout the week as the market continued its downward trend, the strength of the market increase. Volatility of the market was the highest during last two days of the week due to news release. In the coming week, we can expect news release such as German ZEW Economic Sentiment, ECB press conference, US unemployment claims and Manufacturing PMI. There will also be meetings and Greek election over the weekend. During such times of news release, it is advisable to reassess your positions and preferably not hold any over the weekend so as to minimise any surprises.

Over the previous week, market was in a downtrend with lower highs and lower lows. 20 SMA broke through the resistance of 1.17 after 2 days of trading around that range. Stochastic indicated that the market is near an oversold level whilst the ADX shown that the market is picking up in strength. There is a possibility of the market to continue its downwards movement. If the price breaks below 1.15, we can expect to see the market falling to 1.10.  During which, counter trend trading is not advisable as the market seemed to gain strength in the downwards direction. Over the previous week, market was in a downtrend with lower highs and lower lows. 20 SMA broke through the resistance of 1.17 after 2 days of trading around that range. Stochastic indicated that the market is near an oversold level whilst the ADX shown that the market is picking up in strength. There is a possibility of the market to continue its downwards movement. If the price breaks below 1.15, we can expect to see the market falling to 1.10. During which, counter trend trading is not advisable as the market seemed to gain strength in the downwards direction.

 

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Trend Direction
 S3
S2
S1
R1
R2
 R3
 Slightly
Bearish
 1.070 1.114  1.420 1.177 1.190 1.211

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