4 hour timeframe:
The amplitude of the last 5 days (high-low): 58p - 38p - 71p - 23p - 35p.
Average amplitude for the last 5 days: 45p (44p).
The third trading day of the week ends for the EUR/USD pair in a new round of downward correction. It managed to repeat today what was "achieved" five days ago, reaching a level of 1.1324. However, the pair could not continue moving up and the volatility of the last two days is 23 and 35 points. Needless to say, the market is completely "calm". It is extremely difficult to trade in similar movements of power and the potential profit is very small. Plus, it should be added that the upward trend is very weak and unstable and can be completed accordingly at any time. Thus, each trader decides for himself whether to open a transaction in such conditions.
Today, the euro currency had the chance to at least become more attractive to market participants. Inflation report could get the pair off the ground However, this did not happen, particularly because the real value of the consumer price index completely coincided with the forecast. No other important macroeconomic reports have been scheduled for today. On this basis, the forecast for the EUR / USD pair will be as follows: First, the upward trend (weak) will continue as long as the price is above the critical Kijun-Sen line. Should or should not open purchases, each trader decides for himself given the minimum volatility. Secondly, the market may turn down for a while, especially if there is strong fundamental information. For example, the news on a trade war with the United States or if the big players enter the market. Bulls are now extremely weak and no one needs long-term purchases of the Euro currency since the real value of the consumer price index completely coincided with the forecast.
Trading recommendations:
The EUR/USD pair began a new round of correction. Thus, new purchases of the pair can be considered in the event of a price rebound from the critical line with a target resistance level of 1.1344 and not forgetting about the minimum volatility of the instrument, which may not even be enough to work out such a close goal.
Sale positions are recommended to be considered in small lots with target of 1.1256 and the Senkou Span B line is not previously overcome below the Kijun-sen line.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanation of the illustration:
Ichimoku indicator:
Tenkan-sen - the red line.
Kijun-sen - the 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 Indicator:
Red line and histogram with white bars in the indicator window.
The material has been provided by InstaForex Company - www.instaforex.com