Forex Technical Analysis: EUR/USD
IFC Markets | May 26, 2014 09:46AM ET
Good afternoon, dear traders and investors. The Forex market is not expected to have any active fundamental news background as the U.S. and the UK respectively celebrate the Memorial Day and the Spring Bank Holiday. The main event for today is the ECB President, Mario Draghi’s speech at the European Banking and Financial Forum at 10:00 (CET, server time). Traditionally, investors will expect new signals about the monetary policy from the European regulator. After the speech, there may be a new impetus for the European currency volatility, which we research by the means of technical analysis.
Here we consider the EUR/USD on the H4 chart. The D1 and the H4 trends are influenced by the bears. The RSI-Bars confirms the downward momentum, as is seen on the chart. The price currently drifts below the PivotPoints signal line - this means that the correction is not expected to show up in the near future according to the technical analysis. The ParabolicSAR also confirms the trend.
The pending sell order is most optimally to be open below 1.36151 corresponding to the last fractal minimum. The preliminary target is located around the daily resistance line at 1.35949. Conservative traders are recommended to partially close the position in case this level is reached and more aggressive traders can move the Stop Loss towards the market direction. The preliminary SL is recommended to be placed near the resistance level at 6437, which is located above the PivotPoints signal line. We will move the SL following the Parabolic SAR every 4 hours. Thus, we optimize the return/risk ratio in our favor down the process of changing market circumstances. It is recommended to cancel the pending sell order if the price crosses the stop loss level before the pending order.
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