Technical analysis: Will the EUR/USD retreat resume?
Recommendation for EUR/USD: Sell
Sell Stop: Below 1.2076.
Stop Loss: Above 1.2116.
MACD: Sell.
Donchian Channel: Sell.
MA(200): Buy.
Fractals: Sell.
Parabolic SAR: Sell.
On Balance Volume: Buy.
Chart analysis
The EURUSD technical analysis of the price chart on 1-hour timeframe shows EURUSD: H1 is declining toward the 200-period moving average MA(200) which is rising. We believe the bearish movement will continue after the price breaches below the lower bound of the Donchian channel at 1.2076. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 1. 2116. After placing the order, the stop loss is to be moved to the next fractal high 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 canceling the order: the market has undergone internal changes which were not taken into account.
Fundamental analysis
Germany’s business confidence improved less than expected in April. Will the EURUSD retreat resume? Germany’s business confidence improved less than expected in April: the Ifo Institute reported the German IFO Business Climate index rose to 96.8 for April from -96.6 in March when an increase to 97.8 was forecast. This is bearish for EURUSD.
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Author
Dmitry Lukashov
IFC Markets
Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.
