EUR/USD analytical review with forecast for July 22, 2013
July 22, 2013 10:03 am
On Friday, the European currency was trading rather calmly against the US dollar. All the attention was turned to the measures taken by People’s Bank of China and during the election in Japan which led aside major investors from investing into risk assets.
Trading closed in favour of the euro. It strengthened against the US dollar 32 points, market volatility was 62 points.
Fundamental review:
Relevant fundamental data has not been published.
Technical analysis:
The euro slightly strengthened against the US dollar and it did not allow the bulls to change the tendency in their favour, as the result the trading preserved in the sideways price channel. The lower boarder of this channel passes in the area of low of July 18, 1.3065. Meanwhile, the upper boarder is located in the area of the high of July 17, 1.3177 and today’s high, 1.3168.
Buyers continue to gain positions actively, at the moment the EUR/USD pair has moved to the major level of resistance in the area 1.3165. If it is broken, new highs in the area 1.3193 and 1.3227 will be open.
30-day moving average tries to moves aside 50-day moving average and changes its direction to uptrend. However, it is not recommended to take it into account unless a strong break of important levels of resistance occurs.
It the euro sellers act actively, the first intermediate level of support is the area of 1.3141, here the pair may return to the area 1.3114 and collide with the relevant level of 1.3087. Break of these price ranges may lead to a new decline of the euro to 1.3087, here the drop may continue to 1.3045 and 1.3015.
Bollinger Bands continues to point out the low market volatility, which means there are no major players on the market. The trading is conducted in the upper part of the channel and median line, placed in the area 1.3138, serves as dynamic level of support.
MACD indicator is still near the zero line. It moved slightly amid the Friday’s growth of the pair observed in the second half of the day. However, the trading continues in the range 1.3087 to 1.3165. Here the trading is recommended.
Today’s key levels of support and resistance:
Levels of support: 1.3141, 1.3114, and 1.3087
Levels of resistance: 1.3165, 1.3193, and 1.3227
50-day Moving Average (yellow line) – 1.3117
30-day Moving Average (green line) – 1.3136
Maxim Magdalinin takes part in the Analyst of the Year award
Opinions, considerations, analysis, and any other information presented in form of market commentaries should not be regarded as instructions. Analyst does not responsible for any gains or losses which may be amid direct or indirect usage of the information.
You may contact the author: maksim.magdalinin @ analytics.instaforex.com
The material has been provided by InstaForex Company – www.instaforex.com
On Friday, the European currency was trading rather calmly against the US dollar. All the attention was turned to the measures taken by People’s Bank of China and during the election in Japan which led aside major investors from investing into risk assets.
Trading closed in favour of the euro. It strengthened against the US dollar 32 points, market volatility was 62 points.
Fundamental review:
Relevant fundamental data has not been published.
Technical analysis:
The euro slightly strengthened against the US dollar and it did not allow the bulls to change the tendency in their favour, as the result the trading preserved in the sideways price channel. The lower boarder of this channel passes in the area of low of July 18, 1.3065. Meanwhile, the upper boarder is located in the area of the high of July 17, 1.3177 and today’s high, 1.3168.
Buyers continue to gain positions actively, at the moment the EUR/USD pair has moved to the major level of resistance in the area 1.3165. If it is broken, new highs in the area 1.3193 and 1.3227 will be open.
30-day moving average tries to moves aside 50-day moving average and changes its direction to uptrend. However, it is not recommended to take it into account unless a strong break of important levels of resistance occurs.
It the euro sellers act actively, the first intermediate level of support is the area of 1.3141, here the pair may return to the area 1.3114 and collide with the relevant level of 1.3087. Break of these price ranges may lead to a new decline of the euro to 1.3087, here the drop may continue to 1.3045 and 1.3015.
Bollinger Bands continues to point out the low market volatility, which means there are no major players on the market. The trading is conducted in the upper part of the channel and median line, placed in the area 1.3138, serves as dynamic level of support.
MACD indicator is still near the zero line. It moved slightly amid the Friday’s growth of the pair observed in the second half of the day. However, the trading continues in the range 1.3087 to 1.3165. Here the trading is recommended.
Today’s key levels of support and resistance:
Levels of support: 1.3141, 1.3114, and 1.3087
Levels of resistance: 1.3165, 1.3193, and 1.3227
50-day Moving Average (yellow line) – 1.3117
30-day Moving Average (green line) – 1.3136
Maxim Magdalinin takes part in the Analyst of the Year award
Opinions, considerations, analysis, and any other information presented in form of market commentaries should not be regarded as instructions. Analyst does not responsible for any gains or losses which may be amid direct or indirect usage of the information.
You may contact the author: maksim.magdalinin @ analytics.instaforex.com
The material has been provided by InstaForex Company – www.instaforex.com
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