4-hour timeframe

The amplitude of the last 5 days (high-low): 144p - 61p - 36p - 57p - 61p.

Average amplitude for the last 5 days: 72p (69p).

On Thursday, March 14, the EUR/USD currency pair started a weak downward correction based on pure technicalities. For several days, traders moderately bought the European currency, now it is time to take a little profit. Volatility in the pair remains rather weak, as well as the attention towards it from the side of traders. As we have repeatedly said, this week there is only one currency - this is the British pound. The pound beats all volatility records. With regard to macroeconomic reports, the European calendar was completely empty for today, and information on applications for unemployment benefits (lowest deviation from the forecast) and data on changes in sales of new houses (also the lowest deviation) came from the US. In addition, both reports are insignificant, so a special reaction to them as a whole was not expected. Because traders can only wait for the completion of all the twists and turns in the British Parliament, as well as important news from the US and the European Union. By the way, it is worth noting that the "divorce" of the EU and the UK does not in any way affect the rate of the euro currency. We still believe that the downward trend in the instrument could resume at any time, despite the "golden cross". Consequently, long positions are now irrelevant due to the outbreak of the correction, which can move in a new downtrend. If the "golden cross" remains, and the MACD indicator turns up, then buy orders will remain relevant.

Trading recommendations:

The EUR/USD pair started to adjust. Thus, to be able to open new longs with the targets of 1.1351 and 1.1373, it is recommended to wait for the MACD indicator to move upwards, which will indicate a completion of the correction.

Short positions are recommended to be considered if bears manage to consolidate back below the critical line. In this case, the trend will change to a downward, and the targets will be the levels of 1.1230 and 1.1145.

In addition to the technical picture, fundamental data and the time 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:

A red line and a histogram with white bars in the indicator window.