Expanding Formation Appeared

Posted On 08 Apr 2016

Tag: ECB

Yesterday”s Trading:

The euro/dollar on Thursday closed down. The euro weakened against the US dollar after the publication of minutes from the ECB”s March meeting. The minutes indicated an inclination of relaxing further their monetary policy.

The euro met the support at 1.1337 (90 degrees) and then the price returned to 1.1385 (LB). There was no reaction from traders to the chiefs of the ECB and US Fed speaking. When trading finished in Europe, the pair switched into a sideways.

Market Expectations:

The calendar for Friday is pretty much empty. A spike of volatility via the euro/pound cross is possible when the UK stats come out. On my forecast I”ve gone for a sideways for the euro along the balance line with an average price of 1.1375 for the last 55 hours.

Day”s News (EET):

11:30, UK balance of trade, manufacturing production, manufacturing production in the manufacturing industrial sector for February.
15:15, Canadian new foundations lain in March, 15:30, employment changes and unemployment level for March.

Technical Analysis:

For the past two trading days the 1.1334 – 1.1437 price range was expanded from 01/04/16 to 1.1326 – 1.1453. As a result, an expanding formation which is similar to a diamond has appeared. If it is such a pattern, we should now see the right side converging. This means that it”s not worth lifting above 1.1420 and dropping below 1.1330. Today I”m limiting myself to a 1.1345 – 1.1400 range.

Also, keep an eye on the movements of the euro/pound. If the rate falls below 0.8044, the euro dollar will shift to 1.1320. As I said above, the swings on the cross could start coming about at 11:30 when the UK stats come out.

Source:: Expanding Formation Appeared

About the Author

Alpari was founded in 1998 and is one of the world’s leading Forex brokers, offering clients a full package of the most modern financial instruments and technological solutions for online trading and investment. According to data from Finance Magnates, Alpari has been one of the largest Forex brokers in the world for a number of years. The trading turnover of the Alpari companies in 2014 was 2.5 trillion USD. Today Alpari is the world’s largest MetaTrader 4 Forex broker. The first half of 2015 saw company branches offering their services to over one million clients from over 150 countries in the world. Alpari clients have access to over 50 currency pairs and an extensive range of other instruments. The company offers the use of three trading platforms for computer and mobile applications for use with iOS and Android. Alpari is a member of international organizations such as The Financial Commission (Hong Kong) and CRFIN (Russia). Bonuses: the Alpari Bonus Program was launched in 2014 and allows clients to independently change their conditions for working on the financial market: reduce commission, save money on swaps, improve conversion rates and much more. Read More about Alpari HERE or you can visit their website direct by CLICKING HERE..