Taking into account the absence of the US fundamental statistics, the movement was decreased to zero level. Only at the European trades the EUR/USD managed to strengthen from 1.4300 to 1.4360. Mostly, this growth was caused by the German positive industrial orders data and also by a slight oil price increase witnessed at Monday deals. Having eased the passion, the European currency pulled back to the 43 big figure range, and the rest of time the trading took place within the sideward channel 1.4324-1.4346. The day closing at 1.4331 allowed the eurobulls to gain 27 points against the US dollar. As it was mentioned above, the volatility rate was very low.
The Eurozone Sentix investors confidence index ticked down to -14.60 versus the last period reading of -17.0. Despite the experts were waiting for more significant rally to -13.50, but the general trend is still negative. The manufacturing orders in Germany fell by 0.3% in the same period with an advancement of 3.80%. This moderate lowering did not influence the market participants sentiment regarding the Euro purchase due to that economists were expecting for a sharper decline to 2.00%. Worth noticing that since the beginning of August the Germany industrial orders have been in the positive zone.
From the techincal aspect, there were no any changes. The further improvement after the high of 1.4359 was restrained by correctional Fibo level of 23.6% and also by a little support at 1.4360. There was no a certain rise or fall from the upper bound of the rising price channel, probably, today will be determined the week direction. In a short term we may see a strong resistance level testing at 1.4379. Concerning the Bollinger bands, yesterday it was clearly visible how the market dynamics was weakening, making the pair move sidewards within the price channel 1.4326-1.4346. Today\'s break through of these bounds may provide a great support to the bulls or bears in a short term.
I recommend to buy the pair at 1-hour timeframe closing above 1.4349 with the target – T/P 1.4380 and S/L 1.4323
Sell the pair at 1-hour timeframe closing below 1.4321 with the target– T/P 1.4289 and S/L 1.4353.
Best regards,
Analyst: M.A. Magdalinin
