The euro / dollar currency pair showed a low volatility of 38 pips by the end of the last trading week, but this was enough to keep the quote within the key value. From the point of view of technical analysis, we see a moderate fluctuation within the pivot point 1,1100, forming an accumulation in the market. As discussed in the previous review, traders took a waiting position, covering all previously opened deals. The reason for so many cardinal moves is simple, there are many nuances that could make adjustments to short positions, so it's better to close and wait a bit. Considering the trading chart in general terms (daily timeframe), we see that the quotation is at the level of 1.1100, which keeps the clock frequency in terms of restoring the global downward trend.
The focus of the news background on Friday, of course, was the data on GDP (Q2) of the United States, where they expected a slowdown in economic growth from 3.1% to 1.8%. As a result, we received a slowdown, but not, as predicted, up to 1.8%, but up to 2.1%. Against this background, the US currency managed to resist heavy losses, and as a fact, the quote returned to the limits of the previously found point of support. The restraint of traders is certainly felt, and, most likely, the reason for this is the upcoming Fed meeting, where clarifications are waiting and, as an option, a possible reduction in the key rate. We return to the information background, but here, in principle, everything is quiet. Everyone is moving away from the hype associated with the ECB. According to Brexit, everything goes on as usual. Nothing has changed in the rhetoric of Boris Johnson, only plans to allocate £ 100 billion for an advertising campaign,
Today, in terms of the economic calendar, we have an empty economic calendar, thereby all hope for the information background.
Further development
Analyzing the current trading chart, we see an amplitude fluctuation of 1.1110 / 1.1140, which reflects the indecision on the market. Traders, in turn, continue to be out of the market due to the emerging uncertainty. If we consider everything that happens in general terms, then, of course, there is a characteristic oversoldness, with the fear of the upcoming Fed meeting. For this reason, the only thing that can be done is to analyze the points of fixation and make a layout of possible development options.
Based on the available information, it is possible to decompose a number of variations, let's consider:
- We consider the positions for purchase in the case of price fixing higher than 1,1150.
- We consider selling positions after clearly fixing the price lower than 1,1100.
Indicator Analysis
Analyzing a different sector of timeframes (TF), we see that indicators in the short term are changeable in themselves, signaling a neutral interest. To a greater extent, this is due to stagnation. Intraday and medium term retained a downward interest in the market due to the general background.
Weekly volatility / Measurement of volatility: Month; Quarter; Year
Measurement of volatility reflects the average daily fluctuation, based on monthly / quarterly / year.
(July 29 was based on the time of publication of the article)
The current time volatility is 22 points. It is likely to assume that in the case of continued bumpiness along the level of 1.1100, volatility will remain low.
Key levels
Zones of resistance: 1.1180 *; 1,1300 **; 1.1450; 1.1550; 1.1650 *; 1.1720 **; 1.1850 **; 1.2100
Support areas: 1,1100 **; 1.1000 ***; 1,0850 **
* Periodic level
** Range Level
*** Psychological level
**** The article is based on the principle of conducting a transaction, with daily adjustment
