At yesterday's trading, the main currency pair of the Forex market continued to grow. In my personal opinion, this is not surprising since the lack of specifics after the Fed meeting regarding the timing of the reduction of the quantitative easing program finally undermined the already limping US dollar. And then yesterday's negative macroeconomic statistics from the United States further aggravated the pressure on the US currency. Let me remind you that yesterday's preliminary data on US GDP turned out to be much weaker than economists' forecasts, which were reduced to the fact that the leading world economy would grow by 8.6%. The growth turned out to be much more modest - it was only 6.5%.
Investors were not pleased with the initial applications for unemployment benefits in the United States, which jumped to 400 thousand, while expectations were reduced to 380 thousand. In general, we can already say with confidence that the current week turned out to be highly inglorious for the US dollar, which is covering the current five-day period with a confident decline against the single European currency. However, we will summarize the results of the July and weekly trades on Monday, after the month and week have closed. For now, we will see what interesting positioning options can be found today.
Daily
As a result of yesterday's growth, the EUR/USD pair confidently overcame the blue Kijun line of the Ichimoku indicator and ended Thursday's trading at the level of 1.1887. At the same time, as can be seen on the chart, the euro bulls broke through a relatively strong resistance of sellers at 1.1880. It seems that the market is working out or at least discharging the daily bullish divergence of the MACD indicator. However, today, at the time of writing, the pair rested on the pink median, near which it seems to have met strong resistance. Considering the completion of weekly and monthly trading, I fully admit some adjustments to the exchange rate. In general, the mood for the euro/dollar is bullish, and there is little merit in this for the single European currency. Such a picture is more influenced by the weakness of the US dollar, the reasons for which were noted above. Since today is the last day of weekly and monthly trading, the reviews will be a little shorter. Thus, let's move on to trading ideas that we will look for in a smaller timeframe.
H1
I stretched the grid of the Fibonacci tool to the rise of 1.1775-1.1895. Since the pair almost reached the strong and important level of 1.1900 for traders, the course correction was obvious by itself. We see that this is what is happening. At the end of the article, the pair fell to the resistance broken the day before at 1.1880 and resumed growth. At this stage of time, the pair has not corrected even to the first pullback level from the indicated growth of 23.6 Fibo. If such a pullback does not happen and the growth continues from the current values, this will further emphasize the strength of bullish sentiment for the euro/dollar. Thus, I consider the main trading idea for EUR/USD to be purchases that are best opened after corrective pullbacks. The nearest and most risky purchases can be tried now, after a rollback to the broken resistance of 1.1880. I recommend taking a closer look at opening long positions at more attractive prices in case of a pullback to the price zone of 1.1870-1.1860. I recommend that you refrain from selling for the time being.
