FX.co ★ Trading plan 07/21/2017

The overall picture: Trend against the dollar.

The main event of the week was the ECB was retained.

ECB President Draghi recognized that the EU is growing more confidently, however, the inflation is still too low and growth is insufficient.

It is uncertain if the EURUSD showed robust growth following the decision of the ECB.

Based on the fundamental analysis for novice traders, the current upward movement of the euro is inconsistent.

The only reasonable explanation is that the euro is being bought because the market players believe that the euro is undervalued to the dollar.

When all the risks are behind, the euro recalls in the previous years, during 2009 to 2013, the average of the EUR / USD was about 1.3000 and from this point of view, the euro could have a growth potential of up to 1.3000.

In addition, the growth trend of the euro moves constantly in 4.5 months in a row (!).

EURUSD

Trend upward.

GBPUSD Purchases with a target of 1.3140.

USDCHF

Sales from the rebound upward.

USDJPY

Purchases with a target of 114.40 (below 110.30 - cancellation of purchases).