Burning forecast 01/22/2018

EURUSD: We trade for a breakout range.

The EURUSD chart has a clear range with a small width of 1.2160 - 1.2325

A breakthrough in the range is expected - up or down - no matter - and a strong move towards breakout.

News background: The main event is the budget crisis in the US, the so-called shutdown - halting the financing of the US government due to the fact that the Democrats and Republicans could not agree in the Senate - the Democrats blocked financing of the government because of disagreement with Trump on expelling illegal migrants from USA.

On this news, the euro's rate first opened with a noticeable jump (gap) of 40 points upward at the opening on Monday, but then completely closed the gap with a decrease and holds at the day's low about 1.2217

It is clear that the market has not yet decided on the direction. As for the budget crisis in the US - most likely, parties in Congress will find a compromise and the situation will be resolved.

Next week - Thursday - a major event - the decision of the ECB on rates.

So, buy from 1.2300, stop at 1.2255, the profit is at 1.2400.

Sell from 1.2160, stop at 1.2205, the profit is at 1.2060.