empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

02.09.202010:52 Forex Analysis & Reviews: Trading recommendations for EURUSD pair on September 2

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.

The rapid upward movement in the euro/dollar currency pair still ended after market participants reached the psychological level of 1.2000, where a slowdown occurred on a natural basis, which resulted in a reversal in the correction phase.

An event in the form of a slowdown was expected in the market. The level of 1.2000 balanced the trading positions, where fixations appeared, followed by stabilization in the form of a correction. In this case, it was necessary to analyze the boundaries of the deceleration for the strength of trading forces, which many traders did before making a trading decision.

In the course of the correctional movement, speculation arose due to the local overbought of the European currency, where the quotation dropped to the area of interaction of trade forces at 1.1900 / 1.1930, known in the market as the upper border of the previously passed flat 1.1700 / 1.1810 / 1.1910.

Analyzing the last trading day of M15 TF, you can see that the surge in short positions occurred in the period 13:15-17:00, that is, with the supply of American traders.

In terms of daily dynamics, another acceleration is recorded by 28% relative to the average level of 85 ---> 109 points. The high level of volatility has been taking place in the market for the fourth day in a row, which indicates a high ratio of speculative transactions.

As discussed in the previous review, traders were guided by a slowdown within the psychological level of 1.2000 (1.1960/1.2000), where, as a result, selling will be considered after the price consolidates below 1.1950.

Considering the trading chart in general terms (daily period), it can be seen that the psychological level of 1.2000 plays the role of a conditional border for buyers, and until it is broken through, a reverse move to the area of the previous flat is not excluded.

Exchange Rates 02.09.2020 analysis

Yesterday's news background contains data on Europe inflation, where price increase of 0.4% was replaced by a decline of -0.2%, which became a signal of deflation in the EU. At the same time, they published the unemployment rate in the EU, where they recorded an increase from 7.7% to 7.9%.

Investors are scared, and American traders take advantage of this. As a result, we see a decline in the European currency.

The statistics for the United States came out a little worse than the forecast. Here, the PMI in the manufacturing sector rose from 50.9 to 53.1 against the forecasted 53.6, but this did not prevent the dollar from continuing to strengthen.

In terms of the information plan, we had a speech by the Vice President of the ECB, Luis de Guindos, who said that the eurozone economy is experiencing a strong recovery in the third quarter.

"The third quarter saw a significant increase in economic activity. The data for July was very good and there was a slight decline in intensity in August," Guindos said.

It should be noted that his speech was before the publication of data on inflation in Europe.

In terms of the economic calendar, we have data on producer prices in Europe today, the rate of decline of which may slow down from -3.7% to -3.5%, which may have a positive effect on inflation in the next period, that is, a slow recovery may give hope to investors, which will lead to an increase in the Euro.

Traders are eagerly waiting for ADP's US private sector employment report for August in the afternoon, which predicts employment growth of 950,000.

An increase in this indicator has a positive effect on consumption, stimulating economic growth and strengthening the dollar, while a decline weakens the dollar.

It is worth considering that there were cases when the market ignored fundamental analysis and followed the speculators' emotions.

Further development

Analyzing the current trading chart, you can see that the corrective movement yesterday is moving to a new level. A consolidation below 1.1880 indicates dominant speculative interest, which could lead to a slide towards 1.1810-1.1780.

An alternative scenario will be considered if the price returns above 1.1925, which will indicate the resumption of the upward trend of 1.1965-1.2000.

Exchange Rates 02.09.2020 analysis

Indicator analysis

Analyzing different sectors of time frames (TF), we see that the indicators of technical instruments on the minute and hourly intervals signal sell due to the correction process. The daily periods, in turn, signal buy by renewing highs.

Exchange Rates 02.09.2020 analysis

Weekly volatility / Volatility measurement: Month; Quarter; Year

The volatility measurement reflects the average daily fluctuations, calculated per Month / Quarter / Year.

(It was built considering the publication time of the article)

The volatility of the current time is 64 points, which signals a high speculative interest at the start of the European session. It can be assumed that the given mood will still remain in the market, which will lead to further growth in activity.

Exchange Rates 02.09.2020 analysis

Key levels

Resistance zones: 1.1910 **; 1.2000 ***; 1.2100 *; 1.2450 **; 1.2550; 1.2825.

Support zones: 1.1800; 1.1650 *; 1.1500; 1.1350; 1.1250 *; 1.1180 **; 1.1080; 1.1000 ***.

* Periodic level

** Range level

*** Psychological level

Gven Podolsky
Analytical expert of InstaForex
© 2007-2024

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.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off