Technical analysis: Will the EUR/USD price resume retreating?
|EUR/USD Technical analysis summary
Buy Stop: Above 1.1732
Stop Loss: Below 1.1702
| Indicator | Signal |
| RSI | Buy |
| MACD | Buy |
| Donchian Channel | Buy |
| MA(200) | Sell |
| Fractals | Buy |
| Parabolic SAR | Buy |
EUR/USD chart analysis
The technical analysis of the EURUSD price chart on 1-hour timeframe shows EURUSD: H1 is attempting to rebound toward the 200-period moving average MA(200) after hitting a 30-day low. And the RSI indicator has formed a bullish divergence. We believe the bullish momentum will resume after the price breaches above the upper bound of the Donchian channel at 1.1732. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 1.1702. After placing the order, the stop loss is to be moved to the next fractal low indicator, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental analysis of Forex - EUR/USD
German manufacturing sector expansion slowed in September. Will the EURUSD price resume retreating?
German manufacturing sector expansion slowed in September. Markit reported German flash Manufacturing PMI declined to 58.5 in September from 62.6 a month ago, when a decline to 61.3 was forecast. Readings above 50.0 indicate industry expansion, below indicate contraction. This is bearish for EURUSD. However current technical setup is bullish for the EURUSD pair.
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