13.02.2019 08:27 AM
Trading recommendations for the EURUSD currency pair - placement of trading orders (February 12)

The currency pair Euro / Dollar for the last trading day showed volatility slightly below the average daily, 63 points. As a result, it has maintained the downward inertial move. From the point of view of technical analysis, the quotation reached the long-awaited range level of 1.1280 / 1.1300, but the "bearish" interest turned out to be so great that, due to inertia, the quote went lower, but still remained within the range of the range response. There was no data reported regarding the Information and news background for the last trading day in Europe. The only thing that can be singled out is the statement by the EU's main negotiator for the Brexit Michel Barnier. According to him, time is very limited.

This image is no longer relevant

Today, the focus of attention is the speech of the head of the Federal Reserve, Jerome Powell. He is expected to receive clarifications regarding the plans of the regulator in the current year, as well as, what will happen to the interest rate. Naturally, this event can play into the hands of volatility, which might possibly increase. US Vacancies, the number of which increased from 6,888 thousand to 6,960 thousand.

USA 18:00 MSK - Number of open vacancies in the labor market JOLTS (December)

USA 20:45 MSK - Speech by Fed Chairman Chairman

Further development

Analyzing the current trading chart, we see the quotation dangling within the range of 1.1280 / 1.1300, thus, forming a kind of two-digit stagnation-pullback. It is likely to assume that this kind of bumpiness will still remain on the market. However, a foothold exists. Nevertheless, looking at history, we can see that this level of 1.1280 / 1.1300 played a significant role in the market.

This image is no longer relevant

Based on the available data, it is possible to decompose a number of variations, let's consider them:

- Buy positions are considered in the case of price fixing higher than 1.1315.

- Positions for sale - I would not want to run into a position ahead of time. If we analyze the history, we can see that the bumpkin within the range level of 1.1280 / 1.1300 was repeated and a rebound was shown afterwards. Thus, we will consider selling positions only in the case of working out the range level of 1.1280 / 1.1300 in the downward direction (as a mirror level), with a clear fixation lower than 1.1250. In this case, the prospect of the local minimum from November 2018 - 1.1214.

Indicator Analysis

Analyzing a different sector of timeframes (TF ), we can see that a neutral interest in the short term has appeared against the background of the current ambiguous stagnation. Intraday and mid-term perspective preserves the downward interest against the general background of the market.

This image is no longer relevant

Weekly volatility / Measurement of volatility: Month; Quarter; Year

Measurement of volatility reflects the average daily fluctuation, with the calculation for the Month/ Quarter / Year.

(February 12 was based on the time of publication of the article)

The current time volatility is 33 points. At the time of Jerome Powell's speech, volatility may increase, exceeding the daily average.

This image is no longer relevant

Key levels

Zones of resistance: 1.1350 *; 1.1440; 1.1550; 1.1650 *; 1.1720 **; 1.1850 **; 1.2100

Support areas: 1.1300 **; 1.1214 **; 1.1120; 1.1000

* Periodic level

** Range Level

Gven Podolsky,
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 always strives to help you
    fulfill your biggest dreams.
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In June we raffle $1000 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.
  • 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.
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
  • 30% Bonus
    Receive a 30% bonus every time you top up your account

Recommended Stories

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