Trading recommendations for EURUSD currency pair – placement of trade orders (September 10)

Trading 10 sept 2019 Donner votre avis

Over the past trading day, the EUR/USD currency pair showed volatility close to the daily average of 53 points, as a result of which the quote returned to the stagnation area on Thursday last week. From technical analysis, we see that the last day turned out to be successful for the single currency, and we returned to the value of 1.1060 again. Is it possible to characterize this return as a step to a further upward move, I would not draw hasty conclusions since the initial consideration is in the form of a flat stagnation 1.1015/1.1060.

As discussed in the previous review, traders are not prone to hasty actions, initially considered a flat movement, but there were no clear price fixations outside the borders, thereby sitting on the fence continued. Looking at the trading chart in general terms (daily period), we see that the correction phase is still maintained in the market, where there is a clear ambiguity at its peak, which is characterized by high shadows.

The news background of the last day had only data on the volume of exports of Germany, which interested market participants in the growth of 0.7% after a long decline. The main round of fluctuations fell on the information background, and so, with the Brexit delay in case of an unsuccessful agreement, they decided. Queen Elizabeth II has approved a bill to ban Brexit without an agreement with the European Union, but the British Prime Minister does not stop, he continues to work to find a way to leave the EU on October 31. Madness or carefully thought-out tactics – we will already know in October, while Europe looks at everything with great skepticism, even in terms of postponement. So, the Dutch foreign trade minister generally believes that Brexit without a deal is still better than another delay, and French Foreign Minister Jean-Yves Le Drian, who a day earlier spoke badly about the new postponement, agrees. What to expect next in this long-playing series? While we are waiting for October 17, where Boris Johnson will try to reach an agreement at the European Council summit, in my opinion, the extension of this Santa Barbara for another season is inevitable.

Today, in terms of the economic calendar, we have only open vacancies in the United States labor market (JOLTS), where a slight decline of 7.348M – 7.311M is expected.

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Further development

Analyzing the current trading chart, we see a clear emergence of a cumulative process, with the conditional limits of 1.1015/1.1060. What is the reaction of the traders? Yes, in principle, no, the work is being done in terms of analysis, waiting for further steps regarding the existing framework.

It is likely to assume that the sluggish fluctuation will continue for some time in the market, where either we will see a breakdown or everything will be delayed until the ECB meeting on September 12. There is another option – this is the EU's spontaneous answers towards the divorce process, in particular, the postponement, but the euro has already managed to adapt so well to all this hype that it's not even sure that it will help.

Based on the above information, we will derive trading recommendations:

  • Buy positions are considered in the case of fixing the price above 1.1060, with the prospect of a move to 1.1080. Further actions will be considered after fixing the price above the level of 1.1080.
  • We consider selling positions in case of price-fixing lower than 1.1000, with the prospect of a move to 1.0980 – 1.0940. You can, of course, enter from 1.1015 to 1.1000, but the risk is great.

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Technical analysis

Analyzing a different sector of timeframes (TF), we see a distinct versatile interest, and so, the short-term period has taken a neutral position, the intraday perspective is a variable upward position, but the medium-term side maintains a downward position.

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Volatility per week / Measurement of volatility: Month; Quarter; Year.

Measurement of volatility reflects the average daily fluctuation, calculated for the Month / Quarter / Year.

(September 10 was built taking into account the time of publication of the article)

The current time volatility is 23 points. If the accumulation process drags on, then we will not see high volatility soon, thereby waiting for a breakdown and a spontaneous information background.

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Key level

Resistance zones: 1.1100**; 1.1180*; 1.1300**; 1.1450; 1.1550; 1.1650*; 1.1720**; 1.1850**; 1.2100

Support zones: 1.1000***; 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.

The material has been provided by InstaForex Company - www.instaforex.com

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