Tuesday 18 October 2016

EUR/USD: Euro is ready to reduce

Scenario "Monday against Friday" worked. At the end of the day the euro closed by growth against the US dollar. Yesterday the calculated objective of 1.1016 was achieved in trading in Asia. The economic calendar was empty, so no one bothered "eurobulls" to adjust the price to the balance.
In the current situation, two scenarios can be considered. First - the return of the price to the level of 1.1058. The second scenario - rebound from the upper border of the channel. The second option is better, since most of the positions in the market are long, and so many market traders will be difficult to move.
The most interesting is that "urobulls" still do not take profits on their long positions. They expect that the growth will continue. Current ratio of buy/sell positions is 70/30. If it becomes equal to 60/40, the market will start to flat, and it is unlikely that we will see a minimum update. Break the top of the channel cancels the scenario for reduction.
According to the technical analysis of the intraday outlook: minimum - 1.0974, maximum - 1.1030, closing - 1.0995.


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