EUR/USD. November 22. Results of the day. The European currency did not find any reason to sustain growth

4-hour timeframe

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The amplitude of the last 5 days (high-low): 91p - 98p - 71p - 113p - 61p.

Average amplitude for the last 5 days: 87p (92p).

The EUR/USD currency pair on Thursday, November 22, did not differ in increased volatility and a certain direction of movement. No important macroeconomic reports were published during the day in Europe, and the thanksgiving holiday is being celebrated in the United States. Thus, traders were deprived of the fundamental grounds for opening new deals. However, the pair remains slightly above the critical line, which holds hopes for a new round of upward movement. At the same time, there are no new fundamental grounds for strengthening the euro. Market participants did not respond to the statements of Donald Tusk on reaching an agreement with Theresa May on Brexit. Now, according to him, the document must be approved by the leaders of 27 EU countries, to whom the document has already been sent. Meanwhile, Italy said it was going to make no changes to the budget document for 2019, despite the fact that the European side rejects it and can take action on this in two weeks. According to the Italian side, any changes to the budget will negatively affect the interests of Italian citizens, and the European Union in vain perceives the refusal of the Italian government to introduce amendments as a rebellion. As you can see, there is no positive news for the euro. On the technical side, the upward mood in the instrument remains, however, at any time, traders may again begin to buy the dollar, as the prospects for the euro remain extremely vague.

Trading recommendations:

The EUR/USD pair is still moving up, extremely weak. Formally, long positions are now relevant to the target of 1.1486, but the chances that a downward reversal will occur in the near future are greater. Thus, you need to be ready for this.

Sell-positions can be considered in small lots with a target of 1,1308, if the pair manages to gain a foothold below the Kijun-sen line. In this case, the trend for the instrument will be downward, but the strength of the downward movement will depend on fundamental factors.

In addition to the technical picture, fundamental data and the timing of their release should also be taken into account.

Explanation of illustration:

Ichimoku Indicator:

Tenkan-sen-red line.

Kijun-sen – blue line.

Senkou span a – light brown dotted line.

Senkou span B – light purple dotted line.

Chikou span – green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD:

Red line and histogram with white bars in the indicator window.

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