EUR/USD: Euro Is Likely To Continue To Decline
Yuri Papshev | Sep 24, 2019 09:12AM ET
Following the decision of the ECB to lower the deposit rate and resume the QE program, Eurodollar remains under pressure. According to ECB President Mario Draghi, the balance of risks for the economic prospects of the Eurozone "is still shifted in the negative direction".
Get The News You Want
Get The News You Want
Given the expectation of a tough Brexit, low inflation and a slowdown in the Eurozone, as well as the threat of an escalation of trade wars, the ECB is likely to continue to take measures to stimulate and support the European economy, which will lead to further weakening of the euro. A further decline in EUR/USD should be expected.
Get The News You Want
Get The News You Want
At the beginning of the European session on Tuesday, the EUR/USD is trading in the range near the 1.1000 mark, trading in downward channels on the daily and weekly charts, below key resistance levels of 1.1190 (ЕМА144 on the daily chart), 1.1245 (ЕМА200 on the daily chart), 1.1285 (level Fibonacci 23.6% of the correction to the fall from the level of 1.3900, which began in May 2014).
Get The News You Want
Get The News You Want
In case of breakdown of the resistance level of 1.1026 (ЕМА200 on the 1-hour chart), EUR/USD will go towards the resistance level of 1.1067 (ЕМА200 on the 4-hour chart). The maximum of correctional growth is possible up to the resistance level of 1.1090 (the upper border of the downward channel and ЕМА50 on the daily chart). The long-term negative dynamics of EUR/USD prevails. Breakdown of the local support level of 1.0960 will provoke a deeper decline and will direct EUR/USD towards 1.0900, 1.0850 marks.
Get The News You Want
The data released on Monday once again indicated that the German economy is on the verge of a recession. Germany's Preliminary Procurement Managers Index (PMI) fell to 41.4 from 43.5 in August, reaching a low of almost ten years. A value below 50 indicates a decrease in activity. France PMI data were also worse than expected.
Get The News You Want
Support Levels: 1.0960, 1.0940, 1.0900, 1.0850
Get The News You Want
Resistance Levels: 1.1000, 1.1026, 1.1045, 1.1067, 1.1090, 1.1115
Get The News You Want
Get The News You Want
Trading Recommendations
Get The News You Want
Sell by market. Stop-Loss 1.1035. Take-Profit 1.0960, 1.0940, 1.0900, 1.0850
Get The News You Want
Buy Stop 1.1035. Stop-Loss 1.0980. Take-Profit 1.1045, 1.1067, 1.1090, 1.1115
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.