empty
 
 
17.05.2019 06:26 PM
EUR/USD. May 17. Results of the day. Inflation in the eurozone is not interested in foreign exchange market participants

4-hour timeframe

This image is no longer relevant

The amplitude of the last 5 days (high-low): 41p – 42p – 43p – 47p – 58p.

The average amplitude over the last 5 days: 46p (50p).

The main indicator of the consumer price index in the eurozone for April was fully consistent with the forecasts of experts and amounted to +1.7% in annual terms and +0.7% in monthly terms. Only the basic consumer price index was higher than market expectations and amounted to +1.3% y/y. However, as we can see, this rather important report did not bring any changes to the current trend. The euro is still prone to fall, and the reaction to today's inflation report from traders was not even followed. Thus, we continue to draw the attention of traders to the fact that now in the first place are clearly technical factors. Namely: the non-renewal of the previous local maximum, frankly a downward trend in 2019, and the weakness of the bulls. If we add to this the absence of a positive fundamental background from Europe, it becomes clear that the path of the euro is one – to the South. Just moving down the pair will not be as fast and zealous as the pound. Now, we expect the EUR/USD pair to decline to 1.1100, but most likely the pair will go below this level. In a few hours, the US will publish a fairly important index of consumer confidence of the University of Michigan. It is expected that the value for May will exceed April. Thus, at the US session on Friday, May 17, the US dollar may receive additional support. The volatility of the instrument remains low. The downward movement is not recoilless, therefore, intraday positions are not entirely rational. The best time of deals for the pair is now 2-3 days. During this time, the pair can pass at least 70-100 points.

Trading recommendations:

The pair EUR/USD resumed its downward movement. Therefore, it is still recommended to consider sell positions with the targets at 1.1131 and 1.1118 and before the MACD indicator turns upwards.

It will be possible to return to buy positions if traders manage to consolidate back above the critical line. In this case, the first target for the long positions will be the resistance level of 1.1268.

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.

Chinkou Span – green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD:

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

Paolo Greco,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback