empty
 
 
17.08.2020 12:50 PM
Trading recommendations for the EUR/USD pair on August 17

The EUR / USD pair has been following the trajectory of the flat since Thursday last week, with which market participants failed to change the current trend.

The sideways channel continues to develop, and sooner or later, speculators will proceed to take advantage of the situation, which will lead to a local surge in activity and breakout from the established boundaries.

But until this situation arises in the market, the scale of the side channel will be enough for optimal trading deals.

Thus, if we analyze the trading last Friday by minutes, we can see that the round of long positions appeared from 10:30 to the end of the day, during which the quote managed to reach the price level of 1.1850. Afterwards, a rebound from 1.1800 occurred, and the price turned down in the market.

Such gave a slight deceleration of volatility by 20%, which is considered a normal deviation when the price moves in a sideways channel.

It followed the idea in the previous review , where traders used optimal tactics, with which local positions with smaller volume were opened within the channel, and the main volume was kept within the flat, working on their breakout.

So, in the daily chart, a fluctuation within the high of the previous movement can be seen, and there are signals that a "Triple Top" may form in the chart in the near future.

As for news, data on EU GDP for the second quarter was published last Friday, where it was revealed that the economic downturn was at -15.0%, indicating a disaster for the EU economy. However, the market was already ready for such figures, so there was no significant reaction with regards to trading.

In the afternoon, data on retail sales in the United States was published, and, according to the report, sales in July were 1.2% against expectations of 1.9%, which affected the US dollar in terms of its further weakening. On the positive side, the previous data for June was revised for the better from 7.5% to 8.4%, but this did not help the dollar in any way.

A little later, data on US industrial production was published, where it was reported that instead of a 3.0% growth in July, the indicator jumped 3.4%. Unfortunately, this factor also did not change the current situation of the dollar.

Today, interesting statistics for Europe and the United States will be released, and the market will continue to follow the technical fluctuation.

This image is no longer relevant

Further development

Analyzing the current trading chart, we can see that the quote passed above the level of 1.1800, and came close to the local high reached on August 13.

If the price consolidates even higher, perhaps above the level of 1.1870, the quote will rise and may even reach the upper border limit of the flat, which is the level of 1.1910. But, an alternative scenario could develop, if the price consolidates below 1.1790, transiting into a fluctuation around 1.1700 to 1.1800.

This image is no longer relevant

Indicator analysis

Analyzing the different sectors of time frames (TF), we can see that the indicators on the hourly period signal buy, mainly due to the consolidation of quotes above the level of 1.1800. Meanwhile, the daily period is still at a buy signal, reflecting the general direction of the trend.

This image is no longer relevant

Weekly volatility / Volatility measurement: Month; Quarter; Year

Measurement of volatility reflects the average daily fluctuation, calculated per Month / Quarter / Year.

(August 17's was built, taking into account the time this article is published)

Volatility is currently 39 points, which is 54% below the average daily value. This suggests that the dynamics are at a low level, with which a 50% acceleration relative to the value of 39 pips is not excluded.

This image is no longer relevant

Key levels

Resistance zones: 1.1900 **; 1.2000 ***; 1.2100 *; 1.2450 **.

Support Zones: 1.1800; 1.1650 *; 1,1500; 1.1350; 1.1250 *; 1.1180 **; 1.1080; 1.1000 ***; 1.0850 **; 1.0775 *; 1.0650 (1.0636); 1.0500 ***; 1.0350 **; 1.0000 ***.

* Periodic level

** Range level

*** Psychological level

Also check the trading recommendations for the GBP / USD pair here , or the brief trading recommendations for the EUR / USD and GBP / USD pairs here .

Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO
  • Depósito al azar
    ¡Haga un depósito en su cuenta de $3,000 y obtenga $5000 más!
    ¡En Noviembre, sorteamos $5000 dentro de la campaña Depósito afortunado!
    Obtenga la oportunidad de ganar depositando $3,000 en una cuenta de operaciones. Tras haber cumplido esta condición, se convertirá en un participante de la campaña.
    UNIRSE AL CONCURSO
  • Opere de forma inteligente, gane un dispositivo
    Recargue su cuenta con al menos $500, regístrese en el concurso y tenga la oportunidad de ganar dispositivos móviles.
    UNIRSE AL CONCURSO
  • 100% de bonificación
    Su oportunidad única de obtener un bono del 100 % en su depósito
    OBTENER BONO
  • 55% de bonificación
    Solicite un bono del 55% en cada depósito
    OBTENER BONO
  • 30% de bonificación
    Reciba un bono del 30% cada vez que recargue su cuenta
    OBTENER BONO

Recommended Stories

¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback