Maradok 
Kereskedési feltételek
Products
Eszkozok
The euro/dollar currency pair over the last trading day showed extremely low volatility of 38 points, which reflects the movement in the existing accumulation. From technical analysis, we see quite an interesting picture, since already on the third trading day, the quotation moves in a narrow range [1.0960/1.0990(1.1000)], showing low volatility. Analyzing the past day in detail, we see a local surge inside the corridor, where the quote once again felt resistance in the area of the psychological level of 1.1000, forming a zigzag movement "-N-" as a result.
As discussed in the previous review, traders slowly analyze the price chart outside the market, since trading within the existing range does not carry sufficient profit, as, for example, work on the breakdown. Thus, no deals were opened.
Looking at the trading chart in general terms (daily period), we see that the correction phase in the global downward trend has not gone away and the peak in its case is the psychological level of 1.1000. On closer examination, we see that the price has already tested the level of 1.1000 three times for strength, as a fact, forming the same side range, as described above. Let me remind you that the pivot point in the downward trend is the value of 1.0880, this point is the minimum of the current year.
The news background of the last day did not have impressive statistics on Europe and the United States, which cannot be said about the information background. There are dates for a new round of trade talks between the US and China, which will be held in Washington from October 10 to 11. This is the first step since the end of July when the last round of negotiations took place, but there is no expectation of anything supernatural. The Chinese authorities intend to narrow the agenda of discussions, excluding the reform of Chinese industrial policy, as well as the system of government subsidies to enterprises.
Moving on, we see a growing discussion about the actions of the Federal Reserve System (FRS) in terms of monetary pumping of the global dollar system. From mid-September to early October, the Fed's balance sheet grew by $185 billion, in fact, this amount of $ Fed pumped into the markets, issuing repos. The speed of the printing press is comparable to 2013 when QE3 was coming, but there has not been an official launch of a new round of quantitative easing (QE4). Let me remind you that yesterday, we mentioned the rhetoric of the heads of the Federal Reserve in Boston and Atlanta, who signaled that they are ready to consider additional easing.
We complete the information and news background under the heading "Scandals, intrigues, investigations" from the expanses of the divorce proceedings of Brexit. The weekly British politics magazine The Spectator, citing an anonymous source from a representative of Downing Street, said that the negotiations with Brussels regarding the proposals of Boris Johnson are close to failure. According to him, the Prime Minister of Ireland Leo Varadkar does not want to negotiate with the UK on the terms of London and stops negotiations with the EU, which without the consent of the Irish side will not advance further.
Anticipating the failure of the next round of negotiations, the same source from Downing Street claims that Johnson intends to resist the delayed exit by bribing EU countries in the form of future cooperation and a place in the forefront who will vote against the delay.
Today, in terms of the economic calendar, we have data on producer prices in the United States, which, according to preliminary forecasts, should remain unchanged at 1.8% y/y. In terms of information background, we have already seen the statement of German Chancellor Angela Merkel regarding the plans of British Prime Minister Boris Johnson. Now, Merkel has said that a Brexit deal is only possible if Northern Ireland remains in the EU customs Union, thus rejecting the Prime Minister's new plan.
Further development
Analyzing the current trading chart, we see a perfect side channel with the same 1.0960/1.0990 (1.1000) frames. We got the perfect opportunity to ride on the upcoming race since this multi-day accumulation will not remain without attention.
In turn, traders are in no hurry to hasty actions and continue to analyze the behavior of quotes and price-fixing points relative to existing boundaries (1.0960/1.1000). The right entry should meet all expectations in the form of a surge in quotes, which many traders expect.
It is likely to assume that the oscillation within the given limits of 1.0960/1.0990 (1.1000) will persist for some time. I can't say exactly how long it will last: an hour, two, a day or even a week, but I do know that we are already in the clip and we are waiting for an impetus to which we should be ready. Thus, the method of work remains the same – " work on the breakdown."
Based on the above information, we derive trading recommendations:
Indicator analysis
Analyzing the different sectors of timeframes (TF), we see that the indicators are more focused on the current horizontal course. That is, the indicators on the minute and intraday periods are changeable depending on the processing of the border. The medium-term perspective shows the current phase of correction.
Volatility per week / Measurement of volatility: Month; Quarter; Year.
Measurement of volatility reflects the average daily fluctuation, calculated for the Month / Quarter / Year.
(October 8 was built taking into account the time of publication of the article)
The volatility of the current time is 31 points, which is a low indicator for this period. It is likely to assume that everything will depend on whether the price will be able to break through these boundaries or not since volatility, in this case, is directly related.
Key level
Resistance zones: 1.1000***; 1.1100**; 1.1180*; 1.1300**; 1.1450; 1.1550; 1.1650*; 1.1720**; 1.1850**; 1.2100
Support zones: 1.0900/1.0950**; 1.0850**; 1.0500***; 1.0350**; 1.0000***.
* Periodic level
** Range level
*** Psychological level
**** The article is based on the principle of conducting transactions, with daily adjustments.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.
