For Traders

Analytical Reviews

Technical analysis

06.02.202008:39 Forex Analysis & Reviews: EUR/USD is preparing for the breakdown; Senate acquitted Trump

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Good afternoon, dear traders! I present to your attention an analysis of the EUR/USD pair.

So, according to our yesterday's recommendation to sell the pair - the instrument ended the day with a good decline, stopping at two levels which were important for the buyers. Let's look at them:

The first level is a two-week low (as well as the minimum of January) and is at a price of 1.099. The second one is more serious which is the low of November last year at a price of 1.098. At the same time, stop orders of buyers of large periods are beyond these levels. The triggering of their stops will lead to a collapse of the price in the zone of these levels, causing the so-called "slippage".

Yesterday, the US currency strengthened on all fronts and the SnP500 wide market index amid news that the Senate acquitted Trump in the impeachment case. Against this background, I recommend developing towards strengthening the American currency. For EUR/USD pair, this will be expressed in a depreciation of the currency pair and with a high probability, it will lead to a breakdown of the levels of 1.099 and 1.098. After breakdowns, I recommend closing short positions and taking profits.

Have a successful trading and control the risks!

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.