4-hour timeframe

The amplitude of the last 5 days (high-low): 94 p-55P-98p-77 p-85 p.

The average amplitude for the last 5 days: 82 p (85 p).

The EUR/USD pair ended the first trading day of the week with an attempt to resume a downtrend. Traders have tried several times to overcome the critical Kijun-sen line, which would be the first step to break the current trend, but all to no avail. By the way, it should be noted that these attempts were not too zealous, which once again proves absolutely "bearish" mood in the market. Thus, the pair did not even manage to adjust more or less significantly. It should also be noted that on Monday, October 29, there were no important and significant macroeconomic publications. Nevertheless, market participants even in such conditions did not find a reason to buy the euro and close short positions. Several secondary reports from the United States, personal income and expenses of Americans, we can say, were worse than forecasts. At least the growth rate of personal income decreased, and the costs are fully consistent with the forecast values. Nevertheless, this did not help the euro to slightly grow. From a technical point of view, everything remains the same. The dead cross signal remains strong. The MACD indicator has turned up, however, it is more discharged than it signals a corrective movement. Based on the foregoing, the downward movement is likely to continue this week, although, of course, the arrival of unexpected and positive news for the euro can change the current picture.

Trading recommendations:

For the EUR/USD pair, the price is trying to resume the downward movement without completing the Kijun-sen line. Thus, turning the MACD indicator down may signal a resumption of the downward movement with the target of 1.2706 and will serve as a signal to open shorts.

It is recommended to open buy orders only after the price is fixed above the Kijun-sen line. In this case, buy orders with small lots with the first target of a resistance level of 1.3019 will become relevant.

In addition to the technical picture, fundamental data and the timing of their release should also be taken into account.

Explanation of illustration:

Ichimoku Indicator:

Tenkan-sen-red line.

Kijun-sen – 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:

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