4-hour timeframe

The amplitude of the last 5 days (high-low): 31p - 62p - 34p - 75p - 78p.

Average amplitude for the last 5 days: 56p (48p).

The first trading day for the EUR/USD pair ends as expected with a full flat and low volatility. Traders are fully focused on the ECB meeting, which will be held this Thursday. Today, there was no news or macroeconomic publications either in the United States or in the European Union. Thus, the market lethargy is quite logical and explainable. Tomorrow the situation for the euro/dollar is unlikely to change. No news and economic reports will be available tomorrow, unless it is not planned. Moreover, all the attention of the public, traders and experts will be focused on the results of the election of the prime minister of Great Britain, which will become known in the morning. Accordingly, the whole trading day will work out of these results, Jeremy Hunt and Boris Johnson will certainly give an interview. Most likely, any statements from the side of the first persons of the European Union will follow. All this information will be crucial to the pound sterling. Returning to the euro currency, the situation is completely clear. Traders simply have no choice but to wait for important news and the ECB meeting. Only after the announcement of the results, when the foreign exchange market realizes how much Mario Draghi's rhetoric will be dovish in his last months of the presidency will it be possible to draw certain conclusions. Most likely, the euro's fall will continue, as too many factors are in favor of this, including technical ones. At the moment, the pair is trading near its local low, but the bulls still show a very weak desire to take the initiative, despite the attractiveness of current price levels for purchases. Support from the United States does not come in recent days, and the reduction in the Fed's key rate is most likely already laid in the pair's current course.

Trading recommendations:

The EUR/USD pair completed the next round of upward correction. Thus, it is now again recommended to sell the euro currency with targets at levels of 1.1185 and 1.1165, as the pair has consolidated below the Kijun-Sen line. Or wait for the completion of the flat.

We recommend buying the euro/dollar not earlier than when the price consolidates above the Kijun-sen line with the first target at 1.1269, but with minimal lots, as the bulls remain extremely weak.

In addition to the technical picture should also take into account the fundamental data and the time of their release.

Explanation of the illustration:

Ichimoku indicator:

Tenkan-sen - the red line.

Kijun-sen - the blue line.

Senkou Span A - light brown dotted line.

Senkou Span B - light purple dotted line.

Chikou Span - green line.

Bollinger Bands indicator:

3 yellow lines.

MACD Indicator:

Red line and histogram with white bars in the indicator window.