(17/07) EUR/USD Analysis and Forecast

(17/07) EUR/USD Analysis and Forecast 

Analysis 

Last week, the EUR/USD market had experienced periods of high volatility, with a difference between the highest and the lowest points being over 100 points. The market had finished significantly stronger, with it closing at 11467.7 as opposed to its start at 11396.6.  

On Monday (17/07), there had been prolonged periods of low volatility and movement. This resulted in fewer opportunities for long-term positions, as indicators such as the MACD, EMA and RSI (all of which have been spoken about in my crossover strategy article) also supported this statement. 

However, judging by the image below and referring to the crossover strategy, there was an opportunity that presented itself at midday. A buy position at that time would have been fitting as the RSI was above 50, EMA(5) had just exceeded EMA(10) and the MACD was on its way up. Following the strategy and having a take-profit of 20 pips and a stop-loss of 10 pips would have resulted in a successful trade, within only 4 hours.

   

(Graph used: IG Index, IG Group)  

Forecast 

I strongly expect the strength of the EUR opposed to USD to rise in the next 24 hours, as the general trend over the last few days has reinforced this prediction. I also believe that the next few days will illustrate a higher level of volatility than demonstrated above, with key events being a major factor to the overall status of the market.

Disclaimer: The forecast above is of my opinion and should not be used as a firm indicator to act on the market, but as an insight and thorough analysis of the general movement and trend of the currency pair discussed above.