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EUR USD Technical Analysis - EUR USD Trading: 2015-01-19
Bundesbank’s report
Today at 13:00 CET the Bundesbank monthly report will be released. It contains articles, speeches, statistics and etc. The German GDP is ranking at the top of the EU members. Therefore, the regulator’s report affects greatly capital markets if the official ECB stance differs from the Bundesbank data. According to the ECB latest statement, deflationary risks are rising and the labor market is recovering in a slow pace. The Germany’s central bank report is monitored by long-term and medium-term investors with utmost care.
Here we consider EUR/USD on the H4 chart. The price crossed upwards the H4 trend line, which is the first sign that bulls are gaining strength. At the same time, there is a weak bullish divergence on the RSI-Bars oscillator chart, despite the trend line reversal. The bullish trend is likely to strengthen in case of a resistance level breakout at 1.16554. In this case, Stop Loss is recommended to be placed below the last fractal support at 1.14586. This mark is strengthened by the lower boundary of DonchianChannel. The second alternative situation assumes the trend continuation after the retracement is finished. Note that Parabolic trend indicator is currently confirming the bearish direction. In such a situation, a pending order can be placed at opposite levels. Let the market choose the price direction. After order execution, another one may be cancelled. Stop Loss is to be moved after Parabolic values near the next fractal low (long position), or fractal high (short position). Thus, we are changing the probable profit/loss ratio to the breakeven point.
| Position | Buy |
| Buy stop | above 1.16554 |
| Stop loss | below 1.14586 |
| Position | Sell |
| Sell stop | below 1.14586 |
| Stop loss | above 1.16554 |
Dear traders. For the detailed report of the strategy based on analytical issues of technical analysis click here.
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