24-hour timeframe
The EUR/USD currency pair in 2018 showed an upward movement only in January. From February to April, the pair traded near its annual highs with a slight downward bias. From April to December inclusive-decreased, with short breaks. Thus, the European currency was under pressure for most of the outgoing year. The reasons for this have been listed more than a dozen times. And at the moment the question is much more interesting, what awaits the currency pair next year? We believe that 2019 may be the year when the euro will show moderate growth against the dollar. First, the Federal Reserve seems to be suspending the course of tightening monetary policy, although it is preparing to raise the rate 2 more times. Second, the ECB has completed its quantitative easing program. Thirdly, Trump may "take up" the US dollar next year seriously and is even ready to dismiss Jerome Powell from the post of Fed Chairman, since he cannot find a common language with him in monetary policy issues. The factor that will be able to put pressure on the euro in the first three months of the new year is still Brexit. The fact is that the deadline for the UK's exit from the EU is March 29. The vote on the draft Brexit in Parliament was to be held in early December, but it has already been postponed to January, and not the fact that it will be held on time. Thus, this epic may be delayed for more than one week after the release of members of the British Parliament from vacation. This may prevent traders from buying the euro in the long run. If the topic of Brexit is resolved successfully, the euro may start to feel the support of market participants from the beginning of the year.
In addition to the technical picture, fundamental data and the timing of their release should also be taken into account.
Explanation of illustration:
Ichimoku Indicator:
Tenkan-sen-red line.
Kijun-sen – blue line.
Senkou span a – light brown dotted line.
Senkou span B – light purple dotted line.
Chikou span – green line.
Bollinger Bands Indicator:
3 yellow lines.
MACD:
Red line and histogram with white bars in the indicator window.
The material has been provided by InstaForex Company - www.instaforex.com