4-hour timeframe
The amplitude of the last 5 days (high-low): 31p - 108p - 47p - 36p - 58p.
Average amplitude for the last 5 days: 56p (61p).
The EUR/USD currency pair continues to move with minimal volatility on Monday, January 21. If you look at the volatility indicators for the last days, it becomes clear that a certain part of the traders just left the market. With what it can be connected? The reasons - mass. Starting from uncertainty, which previously was associated only with the Brexit question, and now with the "Shutdown" in the United States. The situation with Brexit even goes into the category of comical. Two-year negotiations by and large do not matter if the Parliament does not adopt plan "A", "B" or "C" Theresa May. Any plan must be adopted. The European Union has already declared that it is disappointed with the refusal of Britain to accept the Chequers agreement. Theresa May endured two votes of no confidence, but if the vote on her plan "B" fails, then she can get a third vote of no confidence. I wonder how many more there will be? The final date of the country's withdrawal from the EU is March 29, but ... it can be moved to a later date. The United Kingdom could well refuse to withdraw from the EU, according to the decision of the European Court under Article 50 of the Lisbon Treaty. London may well hold another referendum to find out the people's will in the question: What is better? Unordered Brexit or stay in the European Union? In general, the whole saga already seems to be just fed up with everything, including market participants. The eurocurrency ultimately stands still and waits for certain, specific decisions or actions from the EU, the UK or the United States, rather than ranting, the comments of the leaders of these countries on the current "discouraging" situation.
Trading recommendations:
The EUR/USD pair keeps the prospects of a downward movement. Thus, short positions now remain relevant with the target of 1.1313. However, MACD is directed upward volatility is very low, and there is no interesting news now.
Buy positions are recommended to be considered no earlier than price fixing above the critical line. In this case, in small lots it will be possible to open longs with a target of 1.1450.
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