EUR / USD pair for August 28. Results of the day. Ideal time for trading
Amplitude of the last 5 days (high-low): 121p – 70p – 70p – 105p – 99p.
The average amplitude for the last 5 days: 93n (91p).
The European currency continues to show purely technical growth. The most important thing is that the growth is almost recoilless, which is very easy to work out. There is still no reason to assume that the strengthening of the European currency is somehow connected with the EU itself. Most likely, traders continue to reduce short positions on the instrument, which leads to the growth of the euro. However, sooner or later this growth of the euro will be completed, after which the descending trend with high probability will resume. Only Donald Trump himself, who first bargained for himself the best trading conditions with Mexico and the European Union, can only hinder this, now he puts pressure on China, Canada, and Turkey, and in the future may affect other countries. In addition, and the US dollar in recent weeks is falling against the euro, which can not but rejoice the leader of America. To prevent the further strengthening of the dollar, Trump can already standard methods for him. Scandal, for example. Recently, the media has been discussing the topic of Trump’s relations with Russia, which influenced the outcome of the presidential election. Thus, any new information on this matter can disbelieve traders in the advisability of new purchases of the American currency. Although in recent months, the dollar has not been bought only by the lazy, and the fundamental reasons were not always present. Thus, it is Donald Trump who continues to rule the ball in the foreign exchange market. And we advise market participants to continue with increased interest in any statements by the US president and his publications on social networks.
The EUR/USD pair continues to move up. Thus, for today and tomorrow morning, it is recommended to continue trading on the rise with the nearest target of 1,1797. The signal to the manual reduction of the long lines will be the turn of the MACD indicator downwards.
Sell-positions with small lots can be considered if the MACD indicator turns down, and the price is fixed below the level of 1.1709. In this case, one can expect a correction with the goal of the critical Kijun-sen line.
In addition to the technical picture, one should also take into account the fundamental data and the time of their release.
Explanations to the illustration:
Tenkan-sen is a red line.
Kijun-sen is a blue line.
Senkou Span A is a light brown dotted line.
Senkou Span B – a light purple dotted line.
Chikou Span is a green line.
Bollinger Bands Indicator:
3 yellow lines.