EUR/USD. January 9. Results of the day. The euro has broken an important resistance area

4-hour timeframe

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The amplitude of the last 5 days (high-low): 172p - 102p - 73p - 87p - 63p.

Average amplitude for the last 5 days: 99p (96p).

The EUR/USD currency pair on Wednesday, January 9, in the European trading session was trading in an absolutely calm way. However, with the opening of the US session, the European currency began to rise very quickly. This may be due, firstly, to the speech of Donald Trump, who spoke of a "humanitarian crisis" and called on every American to "call Congress and call on the Democrats to approve the construction of the wall on the border with Mexico" unemployment rate in the eurozone (down from 8.1% to 7.9% in November). The first reason also allows us to conclude that the Europeans did not react in any way to the speech of the US leader and found his statement important. But the US dollar has recently been under pressure from traders. And now several factors work against the dollar at once. First, for almost the entire time last year, the US currency has grown, which means it is very overbought. Secondly, the Federal Reserve is likely to complete a key rate hike program in 2019, as evidenced by Powell's dovish rhetoric. Third, Trump is very unhappy with Powell and is considering all sorts of ways to dislodge him. Fourth, the stock market in recent weeks feels bad, which reduces the demand for the US currency. Fifth, the pair has broken through the most important area of resistance in the region of the level of 1.1470. Thus, now the European currency can significantly strengthen its position, and as we can see, almost all the reasons for this scenario lie again in the United States. Today in America, the minutes of the last Fed meeting will still be published, but it is unlikely that it will contain really serious and interesting information.

Trading recommendations:

The EUR/USD pair resumed its upward movement. Thus, now it is recommended to consider buy orders again with the target of the resistance level of 1.1588. A turn of the MACD indicator downwards will indicate a new round of downward correction.

It is recommended to consider sell orders not before fixing the price below the critical line. In this case, the target for the downward movement will be the level of support seen at 1.1304.

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