EUR / USD. 22nd of August. The results of the week. Technical correction continues ahead of the publication of the FRS protocol

4-hour timeframe

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Amplitude of the last 5 days (high-low): 54p - 73p - 78p - 90p - 121p.

The average amplitude for the last 5 days is 83n (79p).

On Wednesday, August 22, the US dollar continues to lose ground within the framework of technical correction. Most of Trump's latest statements and events on the world stage did not attract the attention of traders. Thus, for example, Trump's accusations against Jerome Powell and the entire Fed about too tight monetary tightening were ignored. The publication of the minutes of the last meeting of the Fed is expected tonight, but this document is unlikely to be anything interesting, given the fact that the rate at the previous meeting was not increased, but almost with 100% probability will be increased at the next. Thus, most likely, this report will not change the nature of the trades. Although the dollar itself is becoming more expensive by the very publication of this document. It should also be noted that, most likely, traders are waiting for the results of negotiations between China and the States, which began today, and will be completed tomorrow. A lot will depend on the outcome of the talks in the world, although we believe that the parties will not be able to come to a common denominator and the negotiations will end with nothing. In this case, just the US dollar may begin to rise again, as traders can again regard an event of the kind, as the strength of the US leader and the future improvement of the state of the economy, due to improved trading conditions and a reduction in the balance deficit. In practice, everything may not be so rosy, but now it does not matter. What is important is what most traders will do if they receive such a message. And with a high probability, in this case, the market will buy the American currency.

Trading recommendations:

The pair EUR / USD continues to move up. There are no signals to the beginning of correction at the moment. Thus, it is recommended to stay in long positions with targets of 1.1632 and 1.1671. Turning MACD down will be a signal to the manual closing of the longs.

Short positions can be considered small lots if the MACD indicator turns down, which will mean a corrective movement (at least), with targets of support levels 1.1539 and 1.1507.

In addition to the technical picture, one should also take into account the fundamental data and the time of their release.

Explanations to the illustration:

Ichimoku Indicator:

Tenkan-sen is a red line.

Kijun-sen is a blue line.

Senkou Span A is a light brown dotted line.

Senkou Span B - a light purple dotted line.

Chinkou Span is a 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