Source: Forex Analysis
EUR/USD – Daily.
As seen on the 24-hour chart, the EUR/USD pair continues the growth process in the direction of the upper line of the downward trend corridor, which predicts a further decline in the quotes of the euro-dollar pair. Two sales signals were received earlier. First, a retreat from the upper line of the corridor. Second, a closure under the small upward corridor. At the moment, the pair’s quotes are recovering, which calls into question the development of both the signal and the trading idea, however, in the area of 1.1160-1.1200, the pair can perform a new turn in favor of the US currency and make a new approach to a drop of 350 points. The idea is a bit risky, however, a fairly solid Take Profit can attract traders to new sales in the area of 1.1160-1.1200. The information background is now also on the side of the US dollar. Reports on industrial production in the EU and the consumer price index in Germany were weak. Inflation in the US, on the contrary, rose to 2.3% y/y. Thus, both the “foundation” and the “chart” predict a fall. Unfortunately, even when all the factors indicate a certain movement, it does not always come true.
Forecast for EUR/USD and trading recommendations:
The long-term trading idea remains in force, as the pair’s quotes performed a consolidation under the upward small corridor on the 24-hour chart. Traders still have a target for a fall near the level of 1.0850. Terms of execution – 2-3 weeks.
All short-term trading ideas are canceled.
The material has been provided by InstaForex Company – www.instaforex.com