Euro and US dollar prediction to Buy EURUSD with a target price 1.120
|According to our weekly Euro and US dollar prediction we are looking to Buy EURUSD with a target price 1.120 and a probability of 63%
Evolize graph is made by doing more than 300 predictions using Long-Short term memory networks using different data sources. All of these predictions are divided by the type of data we use as an input and placed into two different histograms. We constantly look for three qualities in the graph so that we could safely believe what it predicts:
-
Normality - the closer the histogram is to normal distribution, the better.
-
Modes - they mostly are the points algorithm believes most certainly be reached, so modes need to be in a normal weekly range for specified currency, otherwise we see that there might be something wrong with prediction.
-
Difference between rows or standard deviation - the more widely the predictions distributed - the more uncertain the algorithm is. So are we.
The probabilities are calculated simply by counting how many predictions are below and above current price.
We publish at least one prediction per week out of 16 we currently have and one daily prediction out of 8, so than our users can see the reasoning we do before trading according to Evolize graphs.
Now let’s look at the predictions. This week EURUSD graph looks quite normal on the both sides. We can see that the Yellow one is more widely distributed but it is still close to normal. Yellow mode is right above current price and it’s great, but the blue mode is already reached. Both distributions are a bit skewed upwards and the probability the the price will reach points above current price is bigger. The question is where to place take profit. Since the difference between rows is 60 pips which is quite big, we decided to lower our take profit and place it on 1.120 with 40 pips at stake.
One needs to know that our algorithm doesn’t use fundamental data as an input, meaning that fundamentals can have a negative impact on this trade. If you believe that some of the economic or political events are able to turn around price trajectory - rethink this trade accordingly.
Detail guide of how to use Evolize predictions to your advantage is here.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.