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30.07.2019 08:42 AM
Breaking forecast from EUR/USD from 07/30/2019 and a trading recommendation

Today there's really nothing to grasp at, since the macroeconomic calendar is essentially empty. So investors can only rely on data on personal income and expenses in the United States, which should grow by 0.4% and 0.3%, respectively. Outpacing growth in revenues does not say anything by itself, but if we consider the fact last month they grew by 0.5%, and expenses by 0.4%, this already indicates a decrease in consumer activity of Americans who are inclined more to accumulate and not waste. Well, this is, to some extent, a negative factor for the dollar. Indeed, in this case, the growth of retail sales is questioned, and with them the profits of companies. Also, this will lead to a slowdown in inflationary dynamics, which already affects monetary policy. Moreover, the sad mood will be reinforced by the expectations of tomorrow's cut in the refinancing rate of the Federal Reserve System. So as soon as the data will be published, the dollar will be under serious pressure.

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The EUR/USD pair, after a test of convergence with the range level of 1,1100, has slowed down sharply, forming a flat formation of 1,1100/1,1150 by the result. Considering the trading schedule in general terms, we see that the flat in this case plays the role of a certain accumulation, on the eve of an important event on Wednesday, I do not exclude that traders take a wait-and-see position.

It is likely to assume that the oscillation within the intended cluster will continue its formation for some time. Then follow the points of consolidation for a breakdown, for placing trade orders. With the available data, it is possible to expand a number of options: First, buy positions are considered in the event of a clear price consolidation higher than 1.1260, where the primary perspective is located around 1.1180; The second option is considered in case something goes wrong and the quotation can still be consolidated below 1,1100.

From the point of view of the complex indicator analysis, we see that the downward interest variably persists for shorter periods, which cannot be said about intraday, where due to stagnation, the indicators have changed to ascending interest. At the same time, deeper temporary areas, like a day period, retain a downward interest against the general background of the market.

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Dean Leo,
Analytical expert of InstaForex
© 2007-2024
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