empty
 
 
27.07.2018 08:48 AM
Technical analysis of EUR/USD for July 27, 2018

Yesterday I noted that price was challenging the long-term important resistance at 1.1730-1.1760. I also mentioned in yesterday's analysis that the best option would be to go short this pair as the risk reward ration favored this view. The potential of a rejection was high, price was near resistance and the stop was very close. Price indeed got rejected and is now nearly 90 pips lower.

This image is no longer relevant

Black lines - triangle pattern

Blue lines - contracting triangle in RSI

The EUR/USD pair got rejected yesterday at the upper triangle boundary and is now trading near 1.1647. Trend remains neutral as long as we are inside this triangle. Break below 1.16 and we will start a move lower towards 1.13. Break above 1.1740 and we are off to 1.19. The RSI is approaching support level so traders should not chase the short side here until we have more info about the market conditions, specially after the US GDP announcement later in the day. This is a macroeconomic announcement that is expected to influence the direction of this pair significantly.

Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In April we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback