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EUR/USD Technical Analysis - EUR/USD Trading: 2020-09-07
EUR/USD Technical Analysis Summary
Below 1,173
Sell Stop
Above 1,203
Stop Loss
| Indicator | Signal |
| RSI | Sell |
| MACD | Sell |
| 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 approached the uptrend support level. It must be broken down before opening a position. A number of technical analysis indicators show signals of further growth. We do not exclude a bearish movement if EURUSD falls below the last 2 lower fractals and the lower Bollinger line: 1.173. This level can be used as an entry point. We can set a stop loss above the Parabolic signal, the upper Bollinger band, the high since April 2018 and the last high fractal: 1.203. After opening a pending order, we can move the stop loss to the next fractal maximum following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the four-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (1.203) without activating the order (1.173), it is recommended to delete the order: some internal changes in the market have not been taken into account.
Fundamental Analysis of Forex - EUR/USD
The recovery of the European economy is slowing down after the coronavirus pandemic. Will the euro quotations decline?
Retail sales in the Eurozone fell by 1.3% monthly in July. This is much worse than both forecast of + 1.5%, and their June result of + 5.3%. Retail sales in Germany fell 0.9% month-on-month in July, while a 0.5% rise was expected. In the United States, retail sales grew by 1.2% in July. Industrial orders in Germany increased by 2.8% in July. This is worse than the forecast ( 5%) and the June figure ( 28.8%). Compared to the mid-March rate, EURUSD is now traded 11% higher. Last week, the ECB chief economist Philip Lane expressed concern about the over-strengthening of the European single currency. In theory, given the current low inflation, the ECB may go for additional monetary easing, since they believe that too strong euro reduces the efficiency of European exports. Recall that in August, the Eurozone's consumer prices growth slowed to 0.4% in annual terms from 1.2% in July.
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