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EUR/USD Technical Analysis - EUR/USD Trading: 2020-06-16
EUR/USD Technical Analysis Summary
Below 1,12
Sell Stop
Above 1,144
Stop Loss
| Indicator | Signal |
| RSI | Sell |
| MACD | Neutral |
| MA(200) | Neutral |
| Fractals | Neutral |
| Parabolic SAR | Sell |
| Bollinger Bands | Neutral |
EUR/USD Chart Analysis
EUR/USD Technical Analysis
On the daily timeframe, EURUSD: D1 breached an uptrend support line down. It approached the psychological support level of 1.12 and must break through it before a position is opened. A number of indicators of technical analysis formed signals for a further decrease. We do not rule out a bearish movement if EURUSD falls below its last minimum and psychological level: 1.12. This level can be used as an entry point. We can set a stop loss above the last upper fractal and the Parabolic signal: 1.144. After opening the pending order, we move the stop loss following the signals of Bollinger and Parabolic to the next fractal minimum. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to a four-hour chart and set a stop loss, moving it in the direction of the trend. If the price meets the stop level (1,144) without activating the order (1,12), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.
Fundamental Analysis of Forex - EUR/USD
The Eurozone trade balance for April 2020 was the lowest since December 2011. Will EURUSD quotes decrease?
The downward movement means the weakening of the euro against the US dollar. The EU’s external trade balance surplus in April was only €1.2 billion (excluding seasonal fluctuations of € 2.9 billion). It showed a powerful drop compared to € 25.5 billion in March. Recall that the Eurozone GDP decline in the 1st quarter of 2020 amounted to 3.1% in annual terms. The forecast for the 2nd quarter may be even more negative given this minimum trade balance data. Earlier, industrial production in the EU fell by 28% annually in April. On June 16, significant data will be released in Germany: May inflation and the ZEW business activity index. The forecasts are very positive. If they do not come true, then the euro may weaken. Retail sales for May, an important economic indicator, will be published in the US. The outlook is also positive, but this time for the US dollar. Moreover, Fed Head Jerome Powell is expected to speak.
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