Technical Analysis EURUSD : 2021-06-24

Recommendation for EUR/USD: Buy

Buy Stop: Above 1.1955

Stop Loss: Below 1.1917

MACD: Buy

Donchian Channel: Buy

MA(200): Sell

Fractals: Neutral

Parabolic SAR: Buy

On Balance Volume: Buy

Chart Analysis

The EURUSD technical analysis of the price chart on 1-hour timeframe shows EURUSD: H1 is rising toward the 200-period moving average MA(200) which is falling still. We believe the bullish movement will continue after the price breaches above the upper bound of the Donchian channel at 1.1955. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 1.1917. After placing the order, the stop loss is to be moved to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis

Germany’s Ifo’s business climate index rose for June. Will the EURUSD rebound resume? Germany’s Ifo’s business climate index rose for June: Ifo Business Climate Index rose from 99.2 points in May to 101.8 points in June, when an increase to 100.8 was expected. This is bullish for EURUSD.
http://bo.fxstreet.com/#/post/create/analysis/2

Hi MacJack88

I see the move lower in Cable today not seen in Fibre.

Do you not think that Fibre needs to catch up this move and reach lower for the corresponding liquidity?

Please let me know your thoughts…

From your question it sounds like a stable parity rate has been established between Fibre and Cable so that Fibre needs to catch up Cables move lower for maintaining corresponding liquidity. I don’t think such a balance has been achieved between them, they move with changes in fortunes of their economies – EU and UK. I think yesterday German Ifo data boosted Fibre while there was some disappointment Bank of England statement didn’t sound hawkish when recent UK inflation was higher than expected. So we just have to look out for changing landscape as always…. Good hunting!