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By the end of the last trading week, the euro / dollar currency pair showed a low volatility of 36 points. As a result, the quote stood, strictly speaking, in one place. From the point of view of technical analysis, we see that the corrective movement from the level of 1.1180 led to the fact that in the area of the mark of 1.1280, we felt resistance, forming a bumpy 1.1245 / 1.1280. As discussed in the previous review, traders who had long positions and worked on the current corrective course went into the stage of fixing the profit, waiting for the breakdown of the existing boundaries. Considering the trading chart in general terms, we see that the clock rate develops in terms of a global downward trend, where the focus of traders is two points: the periodic supports 1.1180 and the fulcrum of the current year 1.1100.
The news background on Friday had data on industrial production in Europe, where the recession was expected a deepening decline from -0.4% to -1.6%, and as a result, it was, but slightly less than -0.5%, but the picture didn't change at all. The United States released data on producer prices where people were waiting for a decline from 1.8% to 1.6%, and as a result, they received it, only almost unchanged, 1.8% ---> 1.7%.
Today, in terms of the economic calendar, we do not have any solid data for Europe or the United States, thus it remains necessary to observe the possible information background.
Further development
Analyzing the current trading chart, we see that the fluctuation within the range of 1.1245 / 1.1280 persists in the market, where the quotation develops near the upper border. It is likely to assume that the movement within the given framework will continue, where traders carefully analyze the existing boundaries for breakdown for the further placement of orders.
Based on the available information, it is possible to decompose a number of variations, let's consider:
- Positions for purchase are considered in case of price fixing higher than 1.1290.
- Sell positions will be considered in the case of price fixing lower than 1.1240, with the prospect of a movement to 1,1200-1,1180.
Indicator Analysis
Analyzing a different sector of timeframes (TF), we see that indicators in the short and intraday perspective have upward interest against the background of the correction. The medium-term perspective has changed indicators from a downward mood to a neutral one.
Weekly volatility / Measurement of volatility: Month; Quarter; Year
Measurement of volatility reflects the average daily fluctuation, based on monthly / quarterly / year.
(July 15 was based on the time of publication of the article)
The current time volatility is 19 points. It is likely to assume that in the event of continued fluctuations within the given framework, the volatility will remain low. Break of current stagnation can lead to increased volatility.
Key levels
Zones of resistance: 1.1300 **; 1.1450; 1.1550; 1.1650 *; 1.1720 **; 1.1850 **; 1.2100
Support areas: 1.1180 *; 1.1112; 1.1080 *; 1.1000 ***; 1,0850 **
* Periodic level
** Range Level
*** Psychological level
**** The article is based on the principle of conducting a transaction, with daily adjustment.
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