4-hour timeframe
The amplitude of the last 5 days (high-low): 53p - 78p - 48p - 70p - 37p.
Average amplitude for the last 5 days: 57p (58p).
The EUR/USD pair ends the second trading day of the week with a decline of "as much as" 30 points. Formally, this is still a downward movement, in fact - this is the usual market noise. There is no trend now, and even the Ichimoku indicator does not signal any trend. No important macroeconomic reports were published today, so we once again draw attention to the fact that there was nothing for traders to respond to. Based on this, the pair can move in any direction at any time. In recent weeks, the pair, it would seem, has shown willingness to form a new downward trend, but the downward movement has stalled near the level of 1,1100, and so far the bears lack the strength and desire to continue it. Meanwhile, the US trade representative said that China refuses to comply with the previously reached agreements, and precisely because of this, the United States intend to raise duties on imports from China this Friday from 10% to 25%. We believe that this is only from the side of the US. In reality, everything can be quite different. In any case, China has not yet made official statements on this matter, so it is difficult for us to judge this situation, since it is visible only from one side. It is also reported that new negotiations will have to be held with China on Thursday and Friday this week, however, there is also information that the PRC may refuse to participate in them due to Washington's overly radical position and unfair increase in duties on Chinese goods.
Trading recommendations:
The EUR/USD pair has broken the Kijun-sen line, however there is no clear trend for the pair at the moment. Formally, short positions are relevant in small lots with a target of 1.1136, which can be supported before the MACD reversal.
It is recommended that you consider long positions no earlier than when the pair consolidates above the Ichimoku cloud. However, as we have already mentioned, there is no evident trend for the pair at the moment.
In addition to the technical picture, one 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