4-hour timeframe
The amplitude of the last 5 days (high-low): 78p - 115p - 118p - 78p - 78p.
Average amplitude for the last 5 days: 93p (91p).
The EUR/USD currency pair on the penultimate trading day of the week showed a moderate upward movement, but this, by and large, does not mean anything. Yesterday, the pair fell, while it grew the day before. And all this against the background of the complete absence of any macroeconomic data, which, in principle, is quite logical for the holidays. Therefore, we are stating a fact: the pair remains within a wide sideways channel restricted by levels of 1,1270 and 1,1470. A small upward slope is available, but it has neither fundamental nor technical grounds under it. Several minor macroeconomic reports, which were published today in the United States, had no impact on the movement of the currency pair, as we warned in the morning. Thus, the MACD indicator, which identifies local reversals of the instrument, now shows the highest accuracy. This indicator turned up, so today or tomorrow the pair can return to the upper boundary of the side channel. Fundamental events are not expected today or tomorrow, neither in the United States nor in the eurozone. It seems that all the most interesting things that could have happened this year have already happened. In the final days of 2018, it is best not to risk in vain and not to open new positions, without good reason.
Trading recommendations:
The EUR/USD pair started an upward correction against the "dead cross". Thus, after the current correction is completed and the price is fixed below the Ichimoku cloud, it will be possible to open shorts with a target level of 1.1310, but only in small lots.
Buy positions are recommended to be considered if bulls consolidate above the Kijun-sen line. In this case, the target for the upward movement will be the resistance level of 1.1470, but, as is the case with shorts, it is recommended to open the longs only in small lots.
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