Home / Forex & Currency Exchange News / Euro Expected to Close the day in Green Zone

Euro Expected to Close the day in Green Zone

By Vladislav Antonov, Alpari


On Tuesday the euro closed down. After a break in the support at 1.1330, the rate fell to 1.1302. From here a rebound was expected. Before the ECB”s Draghi spoke, the sellers chased the buyers back to 1.1285. A close of the hourly candle below 1.13 cancelled out any growth for the euro.

In his speech Draghi expressed concern for low inflation and hinted that the bank may take further stimulative measures. Such an announcement pushed the euro down to 1.1239.

Market Expectations:

The euro updated its session minimum in Asia and is currently trading in the green zone. The rate is at 1.1266. The European calendar is empty. High volatility is expected on the markets until the end of the week. It”s fortunate that the UK referendum is on a Thursday and not a weekend; otherwise we”d have big gaps.

For the past few days, speculators have been swinging the markets using Brexit survey data. As such, I expect to see a revival of the euro to 1.1316 by the end of the European session. Now we”ll take a look at the technical picture and why I”ve selected this exact level.

Day”s News (EET):

  • 15:30, Canadian April retail sales;
  • 16:00, SNB”s quarterly report;
  • 17:00, Eurozone June consumer confidence;
  • 17:00, Yellen to speak, secondary housing market sales during June for the US;
  • 17:30, oil reserves for the week ending 18th June.

Technical Analysis:

Intraday forecast: minimum: 1.1236, maximum: 1.1316, close: 1.1296.

Euro/dollar rate on the hourly. Source: TradingView

It”s not the first time I say that the euro/dollar”s inversion zone is between the 112 and 135 degrees. A definitive triangle has formed at the 112th Gann degree. The depart from it was upwards. The price has restored to 1.1265.

Since the economic calendar is empty, trades in Europe should see a strengthening of the euro against the dollar to the 45th degree at 1.1289. If the restoral goes to plan, I expect to see a return of the price to the trend line at 1.1316 by the close of the European session. This level is boosted by the 67th degree and the balance line will also be there by this evening. Growth to cancel with a close of the hourly candle below 1.1236.

Earn from currency market fluctuations by investing in a Forex Investment Portfolio.

Article submitted by Alpari.com



Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

Check Also

FX Favorable for US Dollar

FX Favorable for US Dollar

EUR/USD is trading near its lows since Mar 1 today. After positive fundamentals in the US and very weak data in the Eurozone, the market became clear in being favorable to the dollar. This week, important macroeconomic events are scheduled for Thursday and Friday, hence the market will be consolidating within the next few days. […]

Leave a Reply

Your email address will not be published. Required fields are marked *