Burning forecast 01/23/2019

The volatility of the EURUSD pair has fallen to the lowest values in recent days - the market is preparing to move.

There are still three main subjects - and none is resolved until the end: 1) the Shutdown in the US - the vote in the Senate on the way out of the budget crisis will begin in the near future; 2) the EU-Britain Agreement - it is most likely that they will accept the Labour Party's proposal and postpone the deadline of Brexit - it's now March 29th.

And finally (3) - the ECB monetary policy meeting: there is no reason for the ECB to change its course to super-soft policy - but even a slight deviation from the soft rate could blow up the market - the ECB's decision on Thursday January 24th.

We are preparing purchases from 1.1415.

Alternative: sell from 1.1300.

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Trading Plan 01/23/2019

The three-month standing of the euro in the range is coming to an end - important events will force the euro to go out of range and look for a new equilibrium zone.

There are three such events:

1) The crisis of the US budget - in the US Senate, a vote on the proposals of Trump and the Democrats must be done before Friday - to find a compromise. There is a lot of pressure to resolve the issue before the start of the new week.

2) Brexit and the British Parliament - it is highly likely that the Parliament will vote to postpone the Brexit term - perhaps for a year.

3) The ECB meeting on Thursday - what are the plans for the current year - amid slowing growth in the US and the EU.

We are ready to buy euros from 1.1415.

We are ready to sell the euro from 1.1300.

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The material has been provided by InstaForex Company - www.instaforex.com

Indicator analysis. Daily review for January 23, 2019 for the EUR / USD pair

On Wednesday, the price will move up. The first upper target of 1.1392 is the recoiling level of 23.6% (yellow dotted line).

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Fig. 1 (daily schedule).

Comprehensive analysis:

- indicator analysis - up;

- Fibonacci levels - up;

- volumes - up;

- candlestick analysis - up;

- trend analysis - up;

- Bollinger lines - down;

- weekly schedule - up.

General conclusion:

On Wednesday, the price will move up. The first upper target of 1.1392 is the recoiling level of 23.6% (yellow dotted line).

The material has been provided by InstaForex Company - www.instaforex.com

GBP/USD: plan for the European session on January 23. No news on Brexit

To open long positions on GBP/USD you need:

The pound continues to show a slight increase against the background of statements by the British Prime Minister Theresa May on the changes in Brexit, but there is no support from the major players yet. While trading is above support at 1.2944, the demand for the pound will remain, which will lead to an update of the monthly high around 1.3006, where I recommend taking profits. Any positive news on Brexit could lead to a more dramatic strengthening of GBPUSD, with the update levels 1.3064 and 1.3127. In the event of a decrease under the support area of 1.2944, it is best to look closely at long positions around 1.2894 and at a rebound from 1.2833.

To open short positions on GBP/USD you need:

The update of yesterday's highs with confirmation of the divergence on the MACD indicator will be a direct signal to the opening of short positions in the British pound. However, the main task for the bears will be to return to the support level of 1.2944, which will lead to the formation of a downward trend and the sale of GBP/USD in the area of lows 1.2894 and 1.2833, where I recommend taking profits. In the case of good news on Brexit and the breakdown of the high of 1.3006, I recommend to consider short positions in GBP/USD only after updating the levels of 1.3064 and 1.3127.

Indicator signals:

Moving averages

Trade is conducted slightly above the 30-day and 50-day moving, but in the current environment it does not mean the continuation of the upward trend in the pound.

Bollinger bands

In case of a decrease in the pound in the first half of the day, the intermediate support will be the lower limit of the Bollinger Bands indicator around 1.2900.

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Description of indicators

  • MA (moving average) 50 days - yellow
  • MA (moving average) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
The material has been provided by InstaForex Company - www.instaforex.com

EUR/USD: plan for the European session on January 23. There is no reference point for further movement

To open long positions on EURUSD you need:

Yesterday's weak data for the euro area led to selling the European currency, but a larger downward movement did not happen. At present, the first signal to buy EUR/USD will be a breakdown and consolidation above the resistance level of 1.1376, which will lead to a stronger upward correction in the region of the high of 1.1411 and 1.1451, where I recommend taking profits. The formation of a false breakdown in the support area of 1.1339 will also be the reason for buying the European currency. Otherwise, it is best to open long positions to rebound from this year's low around 1.1307.

To open short positions on EURUSD you need:

The release of fundamental statistics for the eurozone in the morning is not planned. Therefore, only the formation of a false breakdown in the support area of 1.1376 will be the first signal to open short positions with the main purpose of returning and consolidating below yesterday's low in the area of 1.1339, which will lead to a larger sale of EUR/USD with an exit to the level of 1.1307, where I recommend to fix the profit. In the case of the euro growth scenario, it is best to return to short positions to rebound from a high of 1.1411.

Indicator signals:

Moving averages

Trade is conducted in the area of 30-day and 50-day moving averages, which indicates the formation of the lateral nature of the market.

Bollinger bands

The volatility of the Bollinger Bands indicator is low, which does not give signals to enter the market.

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Description of indicators

  • MA (moving average) 50 days - yellow
  • MA (moving average) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA 9
  • Bollinger Bands 20
The material has been provided by InstaForex Company - www.instaforex.com