24-hour timeframe
Another trading week on the Forex market has ended, and we are summarizing its results. The EUR/USD currency pair was in a downward trend for most of the trading week. Thus, the downward trend continues and the signal from Ichimoku "dead cross", which was formed on March 20, continues to be processed. The pair's volatility has decreased to acceptable levels and is no longer shocking market participants with its values. We can say that now the pair is almost in a normal, calm trading mode. The only thing is that traders continue to persistently ignore all the macroeconomic statistics in the world. This week, there were quite a large number of macroeconomic reports and none of them fully caused a reaction from the markets. Thus, this moment continues, on the one hand, to facilitate trading, since the potential points of reversal have become much smaller, and on the other hand, it has become more difficult to predict the future movement of the pair, since it is not clear what factors the markets rely on when making trading decisions. Thus, now the best strategy can be trading on the trend strictly according to technical indicators.
We will not list all the reports published over the past week, as they still had no meaning for the currency pair. We continue to maintain the view that all the statistics now falling into the hands of traders are only relevant for understanding the scale of losses caused by the "coronavirus" epidemic. There is no shortage of other news either. After all, the whole world has Donald Trump – an American President who knows everything in the world. From the speeches and statements of the US leader, it has long been possible to compile a book of catchphrases. A few months ago, the Washington Post estimated that Donald Trump on average lies 14.7 times a day. By the word "lies" the newspaper means deliberate or unspecial misrepresentation. In the topic of "coronavirus", Trump simply breaks all records, making statements that contradict each other, which are impossible to understand. For example, at the very beginning of the epidemic, when the virus was just developing in the United States, the American President repeatedly stated that "Americans have nothing to fear", and "the virus will not survive the warm season". A little later, when it became clear that the COVID-2019 virus is not a cold or flu, the American President made statements in the style of "it will be difficult, but the American nation will cope with everything". This was followed by grim predictions that "up to 200,000 Americans could die", naturally served with the sauce "if the US government did nothing, the number of victims was estimated in the millions". It also turned out that Trump "knew everything at the very beginning of the epidemic," but "did not want to deprive the American population of hope." It is not clear what hop are we talking about here. We are talking about the fact that if the American President had attached more importance to the pandemic and did not make frivolous statements, then perhaps there would not have been 890,000 infected and 50,000 deaths in the United States now.
But Trump made the most "loud" statement at one of the last briefings in the White House, proposing his own way to fight the "coronavirus". According to the latest research, which was presented by Trump himself, the virus weakens under sunlight, when air humidity increases, and when it is heated. The more these factors simultaneously affect the virus, the faster it dies. Also, "coronavirus" can not tolerate the impact of bleach, dying from it in 5 minutes, and even faster - from isopropyl alcohol. Based on this information, Trump suggested that the body of a person with a virus can be illuminated by ultraviolet or other powerful light. Light is offered inside the person, through the skin, or "in some other way". "And here's another thing. The disinfectant kills the coronavirus in a minute. In one minute! Is there a way to do something like an injection inside or some kind of cleaning? It would be interesting to check this out," - a direct speech by Donald Trump. A curtain. This is the speech of the president of the country, which is watched by a huge number of Americans. Now the question is: how many Americans will take this speech as advice and go to drink bleach? Of course, this is ironic and we hope that there will be no victims, thanks to the advice of Trump. However, representatives of the medical field are already horrified, as they believe that certain individuals can start following the recommendations of Donald Trump. Doctors warn: ingestion of any disinfectant can lead to fatal consequences. John Balmes, a San Francisco-based pulmonologist, warned that even inhaling the fumes of bleach or isopropyl alcohol, let alone being injected into the body, would cause serious health problems. By the way, this warning of doctors looks ridiculous, but it is not superfluous. For example, in Iran, where the use of alcohol is prohibited by Sharia law, at the end of March, 300 people died who decided to disinfect their bodies by drinking methanol. More than 1,000 were injured. The same applies to sunlight or any other light that, according to Trump, can help with the treatment of "coronavirus". Doctors said that all attempts to treat with light will only lead to burns of varying severity and the development of cancer. "Trump's proposals for treatment with the sun and disinfectants do not make sense," all as one, according to doctors. "Trump is absolutely wrong and irresponsible. Sanitizers kill the virus, that's for sure. But when you are infected with it, the coronavirus settles in your cells. And if you use one of the methods to kill the coronavirus in your own cells, then you will die along with the coronavirus," says Dr. Eugene Gu, whose laboratory conducts tests for "coronavirus." It seems that Trump was later explained the absurdity of his statements. The American President said that his statement was sarcasm. "I asked this question to reporters like you with sarcasm to see what would happen," Trump said. Judge for yourself how appropriate sarcasm is on the topic of an epidemic that has engulfed the entire world...
From a technical point of view, the euro/dollar pair has every chance to continue moving down. However, on the 24-hour timeframe, the indicators are still at the stage of getting back to normal. The Bollinger bands continue to narrow, and the Ichimoku indicator lines continue to form a more or less familiar pattern. Therefore, we still recommend trading using 4-hour or lower timeframes, where the picture is clearer. After a two-month "storm" in the currency market, the pair's quotes finally calmed down and returned to the levels from which everything started about 2 months ago. In other words, neither the euro currency nor the dollar has lost much over the past 8 weeks.
Trading recommendations:
On the 24-hour timeframe, the euro/dollar pair continues to trade near the critical line. We still believe that it is best to trade using a 4-hour timeframe analysis, since there is no trend on the current chart. On the 4-hour chart, traders need to overcome the critical Kijun-sen line to expect further strengthening of the US dollar. At the end of this week, a fairly strong correction of the pair began.
The material has been provided by InstaForex Company - www.instaforex.com