4-hour timeframe
Amplitude of the last 5 days (high-low): 55p - 94p - 148p - 68p - 98p.
The average amplitude for the last 5 days is 93n (84p).
On Wednesday, August 15, it became known that Turkish President Erdogan still decided to move from words to deeds and introduce duties on some American goods imported into the country such as cars, alcohol, and tobacco. In addition, Erdogan urged the population to sell dollars and euros in order to stabilize the rate of the lira, which in recent days has very strong pressure against the US dollar. Erdogan also called for the abandonment of purchases of American technology, referring primarily to Apple products. In general, Trump managed to unleash a trade war with another country. The European currency does not seem to care who and against whom sanctions are imposed. The states imposed trade restrictions against Turkey while they responded with its sanctions and the euro is falling. Although Trump himself is opposed to the "expensive" national currency, realizing that this complicates the process of servicing the public debt. So far it is he who is the cause of the strongest strengthening of the US dollar. Also now it is possible to predict future trade conflicts with other countries since Trump seems to be intent on completely removing the US trade deficit. Another question is that almost all countries meet their sanctions for American products, which will reduce its demand abroad. Thus, we are only at the very beginning of the epic "Trump Against All" that this complicates the process of servicing the public debt. For the time being it is the reason for the strongest strengthening of the US dollar.
Trading recommendations:
The EUR / USD pair continues its downward movement. Thus, it is now recommended to remain in the sell-positions with the aim of the second support level of 1.1235. The MACD indicator may start discharging in the near future, so its correction signal may be false.
It is only recommended to open long positions. You can try to bargain away with the goal of the Kijun-Sen line. The question is that the correction for the instrument is now very weak, and therefore, their development is very risky.
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