EUR/USD Technical Analysis | EUR/USD Trading: 2019-02-08 | IFCM India
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EUR/USD Technical Analysis - EUR/USD Trading: 2019-02-08

Slowing euro-zone business activity bearish for EURUSD

Euro-zone’s private sector expansion slowed in December. Will the EURUSD continue declining?

After the European Central Bank January 24 decision to leave policy unchanged euro-zone’s economic data have been negative on balance. The economy slowed in the fourth quarter of 2018 compared with the same period a year ago: Q4 GDP increased 1.2% over year after 1.6% growth in Q3. Retail sales growth was slower in December: it rose 0.8% over year after 1.8% increases in November. And private sector expansion slowed in January as evidenced by the Markit Composite PMI. Slowing of expansion in euro-zone economy is bearish for euro.

EURUSD retreating 02/08/2019 Technical Analysis IFC Markets

On the 4-hour timeframe EURUSD:H4 is retracing after it hit 4-week high in mid-January.

We believe the bearish momentum will continue after the price breaches the below the lower Donchian boundary at 1.1324. A price point below that level can be used as an entry point for a pending order to sell. The stop loss can be placed above the fractal high at 1.1440. After placing the pending order the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (1.1440) without reaching the order we recommend cancelling the order: the market sustains internal changes which were not taken into account.

Technical Analysis Summary

PositionSell
Sell stop Below 1.1324
Stop loss Above 1.1440

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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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