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Old 04-06-2019, 11:36
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Default Re: Tifia Daily Market Analytics

EUR/USD: Current Dynamics

The US dollar continues to decline on Tuesday, under pressure from the heightened expectations of lower Fed interest rates. President of the Federal Reserve Bank of St. Louis and a member of the Federal Open Market Operations Committee James Bullard said Monday that "a reduction in rates may be appropriate soon" to support the economy and accelerate inflation. According to him, "the slowdown may be more dramatic than expected, due to the continuing uncertainty in the conditions of world trade".
On Tuesday, DXY futures dropped to 97.00. Investors are moving away from the risks that have intensified due to the aggravation of the US-China and USA-Mexico trade confrontation, preferring gold, yen, and government bonds. Thus, the yield on 10-year US government bonds fell on Monday to 2.075%, to the marks of September 2017.
At the same time, investors assess the risks and prospects for the direction of further movement of both the dollar and the euro, on the eve of the ECB meeting on Thursday.
The uncertainty associated with Brexit, the situation in Italy, makes investors cautious about the likelihood of further strengthening of the euro.
If the rhetoric of the statements of the management of the ECB is soft in relation to its monetary policy, the euro may decline, including in relation to the dollar.
At the beginning of the European session on Tuesday, EUR / USD is trading near the 1.1250 mark, 10 points higher than the opening price of the trading day. The current growth of the Eurodollar is associated more with the weakening of the dollar and the correction, rather than with the strengthening of the euro.
EUR / USD is in a steady bearish trend.
Below the resistance levels of 1.1285 (Fibonacci level 23.6% of the correction to the fall from the level of 1.3900, which began in May 2014), 1.1315 (EMA144), 1.1365 (EMA200 on the daily chart), long-term negative dynamics prevail.
The signal for the resumption of short positions will be the return of EUR / USD to the zone below the support level of 1.1210 (ЕМА50 on the daily chart) with the likelihood of further falling of EUR / USD with targets located at support levels of 1.1125, 1.1100, 1.1000.
Support Levels: 1.1210, 1.1195, 1.1180, 1.1125, 1.1100, 1.1000
Resistance Levels: 1.1285, 1.1315, 1.1365

Trading Recommendations

Sell Stop 1.1235. Stop Loss 1.1290. Take-Profit 1.1210, 1.1195, 1.1180, 1.1125, 1.1100, 1.1000
Buy Stop 1.1290. Stop Loss 1.1235. Take-Profit 1.1315, 1.1365

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