Trading plan 21 - August 25, 2017

Trading plan 21 - August 25, 2017

The general picture: Increase in volatility is expected.

The week began with agitation: the military exercises of South Korea and the US will start on Monday which can cause a new outburst in tension in Korea. Although the market did not decline largely, the tension has risen.

Among the expected events, the most important is the meeting of the heads of the world's largest securities in Jackson Hole in Canada to be held on Thursday and Friday, August 24-25. The speeches of both the ECB leaders and the Fed are much awaited. Also, the Fed Chairman Yellen will speak on Friday, August 21, at 14.00 London time. On Friday, the markets can actively win back orders for U.S. durable goods at 12.30 London time.

The main movement of the current trend is probably a strong one but up or down fluctuations (in dollars) is almost 50/50.

EURUSD

Formed a narrow consolidation within the following boundaries:

- Daily scale 1. 1660 - 1.1790

- Weekly scale 1.1660 - 1.1910

Formally, the EUR/USD remains in the growth trend but a considerable distance has been achieved that makes a strong pullback (up to 1.1500) or even a downward turn possible if there are important news factors. At the same time, a new strong wave of growth is quite possible and a breakout to the top of 1.1790 followed by another breakout in 1.1910 and a rate of 1.2000. Moreover, both a strong upward movement and a strong pullback are possible to occur within the week.

Buying is recommended after a breakout in the 1.1790 while selling is advised below 1.1660.

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