The EUR/USD is showing sideways trading in between the narrow trading range of 1.0885 – 1.0770. On the hourly chart, the EUR/USD has formed an upward channel, which is a key setup right now. If the EUR/USD manages to break below 1.0775 area, we may see further selling in the pair until the next support level of 1.0720. Conversely, the closing of candles above 1.0770 can drive a bullish trend until 1.0850 and even higher towards 1.0885.
Looking at the leading indicators, the MACD mixed bias as the histograms are tossing above and below 0. However, the stronger economic figures from the Eurozone are somewhat supporting the EUR/USD pair.
As per the recent reports from the European Union, the German business activity declined distinctly in March, mostly led by a record contraction in the country’s service sector. But traders understand that this slowdown in manufacturing data is mostly due to the increased number of coronavirus cases, and this will get better as soon as markets resume business activities.
Considering this, we have opened a buying signal with the following specifications:
Entry Price 1.07915
Stop Loss 1.07515
Take Profit 1.08515
Risk & Reward Ratio: 1: 1.2
Profit & Loss Per Standard Lot = -$400/ +$600
Profit & Loss Per Micro Lot = -$40/ +$60
All the best ^Stay tuned for more updates!