4-hour timeframe
Amplitude of the last 5 days (high-low): 62p - 75p - 104p - 43p - 71p.
The average amplitude for the last 5 days is 71n (70p).
On Tuesday, July 31, the EUR / USD currency pair traded higher during the European trading session, and with a decrease on the American session. Traders do not have now a common opinion about whether to buy or sell the euro. Today, several macroeconomic reports have been published in the Eurozone. So, it became known that the unemployment rate fell to 8.3% in June. The preliminary value of GDP growth for the second quarter is 2.1% against the previous value of 2.5% and the forecast of 2.2%. And the consumer price index rose to 2.1% in July (also according to preliminary estimates).
In general, a controversial package of macroeconomic information, but it still had little support for the euro, which, however, was offset by pressure on the US trading session. Thus, the situation on the instrument practically did not change for the second trading day of the week. Market participants have already fully focused on tomorrow's meeting of the Fed, or rather on its results and although the rate will most likely not change, all of the same attention will be riveted to this event.
In particular, to the accompanying statements of Fed representatives and Jerome Powell. It is expected that the head of the Federal Reserve will touch on the topic of new trading conditions initiated by Donald Trump, as well as "truce" with the European Union. Earlier, Powell indicated his concern with the trade war between the EU and China. Now, on the contrary, he can soften his position or, at least, say that he personally, as well as, the Federal Reserve expects as consequences of Trump's actions in the international arena. He can also comment on Trump's accusations that the Fed often tightens monetary policy quickly, which complicates the process of servicing US public debt. In general, one way or another.
Trading recommendations:
For the EUR / USD pair, the first target was 1.1731 and traders could not overcome it. Thus, there can be a correction that can be worked out today and tomorrow in the morning by small lots with the aim of the critical Kijun-sen line.
Long positions are recommended to be considered after the completion of the current correction or in case of overcoming the level of 1.1731. In this case, the short-term uptrend will continue with the target of 1.1768.
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.
Chikou 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