EUR/USD 5M
During the second trading day of the week, the EUR/USD pair traded very sluggishly. Despite the fact that the volatility was not the lowest – about 60 points - the movements were as modest as possible. The pair showed a trend movement only in the afternoon. And at the same time, it still remained within the 1.1234-1.1360 horizontal channel. Although in fact this channel has long since narrowed to 90-100 points with an upper limit at 1.1360. The minimum upward slope of the movement is also preserved, but at the same time no benefit can be extracted from this, since the angle of inclination is minimal. That is, in fact, the movement remains sideways. Over the past day, Federal Reserve Chairman Jerome Powell and European Central Bank President Christine Lagarde have given speeches. However, neither the first nor the second gave traders any fundamentally new information. Although the dollar began to fall after Powell's speech, so we can assume that the markets found something negative in his speech. But what can be negative there if the Fed is exclusively hawkish for the first time in a long time? Therefore, it remains only to deal with Tuesday's trading signals. The first buy signal was formed near the Senkou Span B line when the price bounced off it at the end of the European trading session. However, the pair could not continue to grow after this signal and formed another buy signal near the Senkou Span B and Kijun-sen lines, which should be considered collectively as a support area (they were too close to each other). This time, the European currency managed to rise in price by 30 points and even reach the nearest level - the extreme of 1.1360, and even settled below it. It was at this moment that long positions should be closed. The profit was about 17 points. No more deals should have been opened, as the trading day was ending.
We recommend you to familiarize yourself:
Overview of the EUR/USD pair. January 12. Jerome Powell promises to fight inflation.
Overview of the GBP/USD pair. January 12. The British economy will face new challenges due to the "safe Omicron".
Forecast and trading signals for GBP/USD for January 12. Detailed analysis of the movement of the pair and trade deals.
EUR/USD 1H
The technical picture on the hourly timeframe has not changed for a long time. In principle, the current nature of the movement is such that it is possible to build new horizontal channels almost every day. One was formed today, but it is available just to illustrate what is happening. The movement, no matter from which side you look, is still horizontal. On Wednesday, we allocate the following levels for trading - 1.1234, 1.1274, 1.1360, 1.1422, as well as the Senkou Span B (1.1329) and Kijun-sen (1.1323) lines. The lines of the Ichimoku indicator may change their position during the day, which should be taken into account when searching for trading signals. Signals can be "bounces" and "breakthroughs" of these levels and lines. Do not forget about placing a Stop Loss order at breakeven if the price went in the right direction of 15 points. This will protect against possible losses if the signal turns out to be false. It should also be taken into account the fact that the flat is being maintained now, so the lines of the Ichimoku indicator are weak. On January 12, the key event of the day is the publication of the US inflation report. We believe that it is this report that can provoke a reaction from traders, which will depend on whether this indicator continues to accelerate. A report on industrial production in the European Union will also be published, but it is secondary.
Explanations for the chart:
Support and Resistance Levels are the levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.
Kijun-sen and Senkou Span B lines are lines of the Ichimoku indicator transferred to the hourly timeframe from the 4-hour one.
Support and resistance areas are areas from which the price has repeatedly rebounded off.
Yellow lines are trend lines, trend channels and any other technical patterns.
Indicator 1 on the COT charts is the size of the net position of each category of traders.
Indicator 2 on the COT charts is the size of the net position for the non-commercial group.
