4-hour timeframe
The average amplitude in the last 5 days is 85n (86p).
Almost the entire third trading day of the week, the currency pair EUR / USD is traded in different directions, generally remaining in one place. There are no new interesting reports, Mario Draghi has not yet spoken, no macroeconomic reports have been published in the States or the EU today. Thus, the lack of initiative among traders is easy to explain and logical. By the way, we note one more unsuccessful attempt to overcome the level of 1.1720. However, this time, the bulls did not even manage to work it out. If the price today is able to go below the critical line, then the bears will have a real opportunity to form a new downward trend, but now much will depend on the nature of the news from the White House. As we have already noted, traders ignored first Trump's introduction of new duties against China for $ 200 billion, and then the introduction of trade restrictions by China for $ 60 billion. Thus, perhaps, this topic has ceased to influence the preferences of traders, at least temporarily. Nevertheless, one should not overlook the theme of the trade war. Technically, now it's even possible flat for a while, as evidenced by the Bollinger bands, turning sideways. Thus, it is now possible to move to the lower Bollinger band, which also coincides with the pivot level of 1.1586. Today, we should pay attention to the performance of Mario Draghi. Perhaps, questions of monetary policy will be touched upon, and this will be able to move a couple from one place.
Trading recommendations:
A downward correction began on the EUR / USD currency pair. It is not recommended to work it out, since there is a high probability of lateral movement now. For short positions, it is recommended to proceed below the cloud of Ichimoku.
Buy-positions are recommended to open after the completion of the current round of correction and when the price is located above the critical line. However, it is worth remembering the strong resistance in the area of 1.17-20 - 1.1750, which the bulls again can not overcome.
In addition to the technical picture, one should also take into account the fundamental data and the time of their release.
Explanations to the illustration:
Ichimoku Indicator:
Tenkan-sen is a red line.
Kijun-sen is a blue line.
Senkou Span A is a light brown dotted line.
Senkou Span B - a light purple dotted line.
Chinkou Span is a green line.
Bollinger Bands Indicator:
3 yellow lines.
MACD indicator:
Red line and histogram with white bars in the indicator window.
The material has been provided by InstaForex Company - www.instaforex.com