4-hour timeframe
The amplitude of the last 5 days (high-low): 46p - 46p - 40p - 41p - 58p.
Average amplitude for the last 5 days: 46p (51p).
On Wednesday, February 27, the EUR/USD currency pair again stands in one place, and overall volatility does not exceed 40 points for the whole day. Well, there are no new data and traders went on vacation again. Yesterday, the pair still showed signs of life due to the speech of Jerome Powell in Congress, which, it cannot be said, gave the markets too much fundamentally new information, but it was still quite an important event. Today, the pair stopped moving up and slipped back into flat. What to do in this situation? Just wait. Wait for new macroeconomic information, wait for new events in the European Union or the United States, new speeches by the leaders of these countries. The main question now is - will there be grounds for continued growth of the European currency? Many experts are now again paying attention to the growth of public debt in the United States. Congress drew attention to this concern and Jerome Powell. It is possible that the Ministry of Finance will run out of funds in early spring, which may lead to a technical default, or the Fed will have to turn on the printing press again. However, from our point of view, this will absolutely not be a problem for the US dollar. In the United States, a country that is used to living in debt, the likelihood of technical default occurs twice a year, and this does not affect the country's economy or the political atmosphere, especially with a president like Donald Trump, who manages to clash with everyone and believes that he is the only one who has a correct opinion.
Trading recommendations:
The EUR/USD pair stopped moving up, and the MACD indicator turned down, so now a correction is possible, at least a side one. It is recommended to open new long positions when the MACD indicator turns up with the target of 1.1422.
It is recommended to consider sell orders not earlier than consolidating below the Kijun-sen line, but even in this case, given the low volatility, the downward movement can be extremely weak. Therefore, it is recommended to work now in small lots or to expect increased volatility.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
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:
A red line and a histogram with white bars in the indicator window.
The material has been provided by InstaForex Company - www.instaforex.com