For the previous trading day, the euro / dollar currency pair showed a low volatility of 30 points, as a result of which, it remains in the same range of fluctuations. From the point of view of technical analysis, we see that after the correction, the quotation went smoothly into the stage of accumulation, forming temporary boundaries 1.1245 / 1.1280, where it fluctuates to this day. As discussed in the previous review, traders finished in terms of taking profits from the positions in the correction, but now they have allotted a waiting period until the quote breaks the accumulation boundaries. Considering the trading schedule in general terms, we see that the “correction” tact process is coming to an end, and the focus is on points such as 1.1180 and 1.1100 to restore the global trend. The news background of the previous day did not show any statistics from Europe and the United States, as if the market took a pause, forming a process of accumulation.
Today, in terms of the economic calendar, we have data on retail sales in the United States, where they expect acceleration from 2.9% to 3.0%, which can support the US currency.
Analyzing the current trading chart, we see the persistence of fluctuations within the range of 1.1245 / 1.1280, approaching the lower boundary of the cluster. It is likely to assume that traders have focused on the lower border (1.1245-1.1235), waiting for its breakdown. If this happens and the accumulation process comes to an end, then I do not exclude a reduction to the first current 1.1195, where temporary stagnation is possible.
Based on the available information, it is possible to decompose a number of variations, let’s consider:
– Buy positions are considered if the current amplitude remains and the lower limit of the cluster is again worked out by the quote.
– Sell positions will be considered in the case of price fixing lower than 1.1235, with the prospect of a move to 1,1200-1,1180.
Analyzing a different sector of timeframes (TF), we see that the indicators in the short, intraday and medium term perspective have taken the downward direction, signaling a possible recovery.
Weekly volatility / Measurement of volatility: Month; Quarter; Year
Measurement of volatility reflects the average daily fluctuation, based on monthly / quarterly / year.
(July 16 was based on the time of publication of the article)
The current time volatility is 21 points. In case of breakdown of the existing cluster, volatility may increase, reaching the average daily rate. Otherwise, we will remain within the existing limits, with low volatility.
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.
The material has been provided by InstaForex Company – www.instaforex.com