EUR USD Technical Analysis | EUR USD Trading: 2015-02-16 | IFCM
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EUR USD Technical Analysis - EUR USD Trading: 2015-02-16

New trend in progress

Let’s examine the EUR/USD currency pair on the D1 chart. The support level at 1.10951 acts as a turning point: the bearish trend is over and bulls are taking action. A V-shaped trend reversal is observed. The trend indicator changed the bias into the bullish one followed by the trend line reversal. The reversal is also confirmed by the RSI-Bars(13) oscillator: the next bar is ready to break the key resistance level at 46.7954%. We expect it to coincide with the price level breakout at 1.15486, which can be used for placing a pending buy order.

technical-analysis-charts-eur-usd

Conservative traders are recommended to confirm the breakout based on the oscillator signal 47%. Stop loss is to be placed below the fractal at 1.12449. This mark is confirmed by the latest Bill Williams fractal, Donchian Channel lower boundary and the intersection of two trend lines. The mark is worth paying a closer look as this is where the bullish pattern called “absorption” was formed (marked in yellow on the chart). The value of this pattern is strengthened by the fact that the bearish candlestick in it is the doji. After pending order activation, Stop loss is to be moved near the next fractal low, following ParabolicSAR values. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets Stop loss level without reaching the order, we recommend canceling the Buy position: market sustains internal changes that were not considered and bears are gaining ground.

PositionBuy
Buy stopabove 1.15486
Stop lossbelow 1.12449

Dear traders. For the detailed report of the strategy based on analytical issues of technical analysis click here.


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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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