24.07.201505:35 Forex Analysis & Reviews: Technical analysis of EUR/USD for July 24, 2015

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.

The euro managed to give a technical bounce despite strong data from the US labor market, but rejected at 20Dsma.

Spanish employment posted an increase of 411,800 in this quarter compared with the first quarter (2.36%), totaling 17,866,500 employed persons.

Today is a big day in the context of PMI data. Data on French, German, and euro flash manufacturing and flash services is due.

Besides, the US flash manufacturing PMI and new home sales are expected to be unveiled.

Recently, the S&P lowered the British GDP growth forecast for 2015 to 2.6 % (previously expected growth of 2.8%), but raised its forecast for the eurozone's GDP.

Technical view:In the daily chart, the pair lost all moving averages. The nearest support is found at 1.0785. The 20Wsma is seen at 1.1020.

The pair has been reaching lower lows and lower tops, falling below the lower end of the ascending trendline. Twice we recommend fresh selling only below 1.0780 with an initial target at 1.0720 and later at 1.0630, but it is not triggered yet.

Then is the first time in 10 days when the pair reached a higher high in the H1 chart. At yesterday's session, the pair found support at the previous swing high of 1.0870 breaching the earlier hourly double top indicating that bullish near-term momentum is back on track. Intraday resistance is seen at 1.1020, 1.1050, and 1.1120. Support is found at 1.0960, 1.0920 and 1.0870. The trend favors buying with sl at 1.0850. Monthly support is found at 1.0730. In case the pair lost the 1.0850 again, selling trade gets activated. The Federal Reserve and the ECB monetary policy differentiation favors bears in the long term.

At yesterday's session we advised buying above 1.0970 with small targets at 1.1000 and 1.1020.

For today's session, buying is available above 1.1020 with small targets at 1.1035, 1.1050, 1.1080, and 1.1100. Use a dip to buy at 1.0900.

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.