Recommendation: EUR/USD: short (a stop-loss order at 1.1445; the downside target around 1.0938)

Although the University of Michigan showed that its index of consumer sentiment slipped to 91.9 this month from 92.9 in July, positive data from the U.S. Bureau of Economic Analysis (which showed that the goods trade deficit narrowed to $59.12 billion in the previous month) in combination with rising U.S. personal spending and U.S. personal income supported the greenback. Thanks to these circumstances, the USD Index climbed above the level of 96. What impact did this increase have on our six currency pairs?

In our opinion the following forex trading positions are justified – summary:

• EUR/USD: short (a stop-loss order at 1.1445; the downside target around 1.0938)
• GBP/USD: none
• USD/JPY: none
• USD/CAD: none
• USD/CHF: none
• AUD/USD: none

EUR/USD

….for larger charts and all of the currency pairs and analysis go HERE