Tifia FX
TifiaFx Representative
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EUR/USD: towards "the south"
23/04/2020
Investors' attitude towards the prospects of European assets and the euro remains restrained negative after the publication of the Eurozone business activity indexes at the beginning of today's European session.
The Eurozone composite PMI (according to IHS Markit) in April reached a record low of 13.5 (with a forecast of 25.7 and values of 29.7 in March and 51.6 in February). The PMI index of business activity in the most important manufacturing sector of the Eurozone also in April was much worse than the forecast of 39.2 and the previous value of 44.5, amounting to 33.6. Values below 50 indicate a slowdown in activity.
Economists predict a significant weakening of business activity in the Eurozone and in the 2nd quarter, which may be the most severe fall in the entire history of observations, due to the fact that most of the European economy is likely to continue to be in quarantine mode to curb the spread of coronavirus in the coming weeks, and maybe months, if the pandemic situation does not begin to improve.
Today, investors will also pay attention to the publication of data from the US labor market, which can cause increased volatility in the quotes of the dollar and the pair EUR / USD, respectively.
At 12:30 (GMT) the US Department of Labor will publish weekly data on the number of applications for unemployment benefits in the week of April 12-18. Their number is forecast to be 4.2 million (after 5.245 million applications in the previous reporting week).
However, the reaction of market participants to the publication of this report by the US Department of Labor can be completely unpredictable. But so far, the dollar continues to be in demand, including because of its role as a protective asset.
Thus, it is logical to expect a further decline in the EUR / USD pair, which is trading at the beginning of today's European session near 1.0760, 1.0780, in the zone below the important short-term resistance levels of 1.0925 (ЕМА200 on the 4-hour chart), 1.0865 (ЕМА200 on the 1-hour chart ), which speaks in favor of short positions.
Support Levels: 1.0785, 1.0655, 1.0600, 1.0580, 1.0530
Resistance Levels: 1.0865, 1.0925, 1.0965, 1.1000, 1.1020, 1.1050, 1.1145
Trading Recommendations
Sell by market. Stop-Loss 1.0870. Take-Profit 1.0700, 1.0655, 1.0600, 1.0580, 1.0530
Buy Stop 1.0870. Stop-Loss 1.0790. Take-Profit 1.0925, 1.0965, 1.1000, 1.1020, 1.1050, 1.1145
*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com
23/04/2020
Investors' attitude towards the prospects of European assets and the euro remains restrained negative after the publication of the Eurozone business activity indexes at the beginning of today's European session.
The Eurozone composite PMI (according to IHS Markit) in April reached a record low of 13.5 (with a forecast of 25.7 and values of 29.7 in March and 51.6 in February). The PMI index of business activity in the most important manufacturing sector of the Eurozone also in April was much worse than the forecast of 39.2 and the previous value of 44.5, amounting to 33.6. Values below 50 indicate a slowdown in activity.
Economists predict a significant weakening of business activity in the Eurozone and in the 2nd quarter, which may be the most severe fall in the entire history of observations, due to the fact that most of the European economy is likely to continue to be in quarantine mode to curb the spread of coronavirus in the coming weeks, and maybe months, if the pandemic situation does not begin to improve.
Today, investors will also pay attention to the publication of data from the US labor market, which can cause increased volatility in the quotes of the dollar and the pair EUR / USD, respectively.
At 12:30 (GMT) the US Department of Labor will publish weekly data on the number of applications for unemployment benefits in the week of April 12-18. Their number is forecast to be 4.2 million (after 5.245 million applications in the previous reporting week).
However, the reaction of market participants to the publication of this report by the US Department of Labor can be completely unpredictable. But so far, the dollar continues to be in demand, including because of its role as a protective asset.
Thus, it is logical to expect a further decline in the EUR / USD pair, which is trading at the beginning of today's European session near 1.0760, 1.0780, in the zone below the important short-term resistance levels of 1.0925 (ЕМА200 on the 4-hour chart), 1.0865 (ЕМА200 on the 1-hour chart ), which speaks in favor of short positions.
Support Levels: 1.0785, 1.0655, 1.0600, 1.0580, 1.0530
Resistance Levels: 1.0865, 1.0925, 1.0965, 1.1000, 1.1020, 1.1050, 1.1145
Trading Recommendations
Sell by market. Stop-Loss 1.0870. Take-Profit 1.0700, 1.0655, 1.0600, 1.0580, 1.0530
Buy Stop 1.0870. Stop-Loss 1.0790. Take-Profit 1.0925, 1.0965, 1.1000, 1.1020, 1.1050, 1.1145
*) For up-to-date and detailed analytics and news on the forex market visit Tifia Forex Broker website tifia.com