4-hour timeframe
The amplitude of the last 5 days (high-low): 82p - 46p - 46p - 40p - 41p.
Average amplitude for the last 5 days: 51p (52p).
On Tuesday, February 26, the EUR/USD currency pair continues to move sluggishly and inactively. Basically, you just have to look at the volatility indicators for the last four days and it becomes clear how the pair moves. With great difficulty, today, the pair managed to reach the first resistance level of 1.1377, but failed to make it work. In conditions of reduced volatility and almost flat, any positions are associated with increased risks, as the pair simply does not fulfill the designated goals, and even if it does it is done within a few days, and these periods are not accompanied by a one-time reversal of the indicators pointing downwards. In general, trade is clearly complicated due to low market activity. As for the fundamental events, everything is simple here - they do not exist. In recent days, macroeconomic reports have not been published, there have been no high-profile political or economic events and statements in the EU and, most surprisingly, in the United States. The latest report on inflation in the EU was simply ignored, since the real value of the CPI coincided with the forecast. In general, the market has nothing to respond to. Thus, we can only expect an event that will be able to stir up the EUR/USD pair (GBP/USD is moving quite vigorously). Jerome Powell will hold a speech in Congress for today, and it can be this event. Markets will unequivocally wait for information about US monetary policy for the coming months and the whole of 2019, as well as confirmation or refutation of the "dovish" attitude, which was unambiguously present in Powell's recent speeches and in the Federal Reserve reports.
Trading recommendations:
The EUR/USD pair resumed the weakest upward movement. Formally, long positions with goals of 1.1377 and 1.1422 are currently relevant, but the movement is extremely weak, which should be taken into account.
It is recommended to consider sell orders not earlier than fixing below the Kijun-sen line, but even in this case, given the weak volatility, the downward movement can be extremely weak. Perhaps, the situation will be corrected by Jerome Powell's speech.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
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:
A red line and a histogram with white bars in the indicator window.
The material has been provided by InstaForex Company - www.instaforex.com