Subscribe to RSS

Forex Technical Analysis EURUSD : 21 January 2016

ECB meeting today

The US December inflation data were released on Wednesday. The prices edged up 0.7% year over year within 12 months hitting a new record high in a year. The core inflation (ex. Food and energy) rose up to 2.1% which is the highest since July 2012. In November it was 2%. Investors considered the US consumer prices growth as negative news for the further rates hike in the US. As a result, the US dollar slightly weakened. Today we are looking into the matter of EURUSD rate. Will it exit the sideways trend?

US inflation growth was a negative factor for dollar. Now the next significant news will be the results of the Fed meeting on January 27. No rates change is expected. However, markets hope the watchdog will disclose its monetary plans for this year. In EU the following ECB meeting is due on January 21 at 13-45 СЕТ. No rates change is expected as well. Investors are awaiting the comments on the further monetary policy and the QE program parameters. The monthly bond purchases of the Bank amount to 60 bn euros since March 2015 with its aim to stimulate the faltering European economy. For the purpose ECB has cut the deposit rate to -0.3% from -0.2%. The QE program is assumed to last till March 2017 or until the core inflation hits the target level of 2%. In December it was 0.9% year over year while the consumer price index (CPI) increased 0.2%. The next preliminary inflation data for January will come out on January 29. Lets consider the scenario of the ending sideways market for euro.

EURUSD

On the daily chart EURUSD:D1 is moving sideways almost since the start of 2015. Now it has verged its middle and the 200-day moving average and is hovering in a narrow range almost for 2 months. The Parabolic indicator has formed the signal to buy. MACD does not give signals due to the too small histogram bars. RSI is neutral and above 50. It has not yet reached the overbought zone, no divergence is seen. The Bollinger bands have contracted a lot which may mean much lower volatility. We believe the momentum may develop in case the chart goes up and surpasses the resistance of the neutral trend, Bollinger band and the 200-day moving average at 1.106 or, in case of the fall below the support of the neutral channel and the Parabolic signal at 1.07. The market will choose the direction itself. Two or more positions may be opened symmetrically: having opened one of the orders the second may be cancelled as the market has chosen the direction. Having opened the pending order we shall move the stop to the next fractal high (short position) and fractal low (long position) following the Parabolic signal every 4 hours. The most risk-averse traders may switch to the 4-hour chart after the trade and place there a stop-loss moving it in the direction of the trade. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop-loss level without reaching the order, we recommend cancelling the position: the market sustains internal changes which were not taken into account.

Position Sell
Sell stop below 1.07
Stop loss above 1.106
Position Buy
Buy stop above 1.106
Stop loss below 1.07

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

Get 100% Bonus Promo Doubles your Deposit – FBS

Get 100% Bonus Promo Doubles your Deposit – FBS(0)

Get 100% Forex Bonus Doubles your Deposit FBS Broker has prepared something really special for you. Activate 100% Forex Deposit Bonus and make your trading x2 more efficient Link:  $50 Free Will be credited to Your Account Link:  $88.8 Forex No Deposit Bonus Link:  $123 Forex No Deposit Bonus Link:  100% Forex Deposit Bonus Promotion

Free SERENITY Tokens for Forex Trading – Grand Capital

Free SERENITY Tokens for Forex Trading – Grand Capital(0)

Get free SERENITY tokens for forex trading on ECN Prime and/or Standard account. SERENITY Free tokens can be used to pay for Serenity Financial platform services or sold on an exchange after the ICO ends. The nominal price of 1 token is 0.1 ETH. Link:  Free SERENITY Tokens for Trading Link:  444% Profit Receive for

Trading Signals and get your opportunity to succeed – FXTM

Trading Signals and get your opportunity to succeed – FXTM(0)

Take advantage of ForexTime Free Forex Trading Signals and get your opportunity to succeed. Get Free Forex Trading Signals prepared by ForexTime professional analysts Link:  FREE trading signals Special Promo Link:  Start Copy Trading your Perfect Partner Link:  $25 Per Referral Earn up to $10000 Link:  Receive $30 Tradeable Credit Free Bonus Link:  Demo Forex

Get 100% Bonus Trusted and Regulated Broker – AvaTrade

Get 100% Bonus Trusted and Regulated Broker – AvaTrade(0)

Register and forex start trading now and claim your 100% Deposit Bonus minimum fund of $100 for first deposit. Just for new customer we welcome you with some fantastic 100% Bonus Offers Link:  100% Bonus to Your First Deposit Link:  35% New Accounts Bonus Promotion Link:  Advantages of Trading Bitcoin Cash Available to: All new

Win-Win Live Trading Forex Contest – Tickmill Ltd.

Win-Win Live Trading Forex Contest – Tickmill Ltd.(0)

Holiday 2017 season is just around the corner and Tickmill is rewarding you with real Bitcoin prizes and rebates. Win-Win Live Trading Forex Contest ensures there is a prize for everyone! Link:  Win-Win Forex Live Trading Contest Link:  Weekly Demo Race Trading Contest Link:  $30 Free Welcome Bonus Offer Link:  Forex Monthly Live Trading Contest

$3500 Forex No Deposit Bonus, Risk Free Trading‎ – InstaForex

$3500 Forex No Deposit Bonus, Risk Free Trading‎ – InstaForex(0)

Get $3500 No Deposit Free Bonus from InstaForex no need to risk your own money if you have already got funds to earn more money. The $3500 No Deposit Bonus from InstaForex is an exciting opportunity to start live trading. Link:  Up to $5000 No Deposit Free Bonus Link:  $500 Forex No Deposit Free Bonus

444% Profit Receive for a Single Trade – Grand Capital

444% Profit Receive for a Single Trade – Grand Capital(0)

Up to 444% Profit receive with our new Express Options for Grand Capital Binary Option Broker Ltd. Make a correct prediction for 3 assets at the same time Link: Up to 444% Profit Receive for a single trade Link:  $500 Forex No Deposit Welcome Bonus Link:  40% Forex Welcome Deposit Bonus Available to: All new

Receive $30 Credit Bonus for Trusted  Broker- FXTM

Receive $30 Credit Bonus for Trusted Broker- FXTM(0)

Switch to ForexTime and receive $30 Trading Credit Bonus. Join the hundreds of thousands of traders around the world who have already chosen ForexTime as a broker and receive $30 Trading Credit Bonus as a thank you for switching. Link:  Up to $200 Cash Bonus this December Link:  Receive $30 Tradeable Credit Bonus Link:  FX

15% Support Margin Bonus and $50 Free Bonus – FortFS

15% Support Margin Bonus and $50 Free Bonus – FortFS(0)

15% Support Margin Bonus Plus $50 No Deposit Bonus to all New and Existing Traders. For Every Traders who passed the verification process in their traders room can get the $50 Free Bonus Link:  $50 Forex No Deposit Welcome Bonus Link: Up to 50% Bonus of Every Deposit Link: 15% Support Margin Bonus As from

Get $34 Forex No Deposit Bonus Contest – Xtream Forex

Get $34 Forex No Deposit Bonus Contest – Xtream Forex(0)

Sign-Up and Get $34 Forex No Deposit Bonus Contest Enjoy Forex Trading Without Deposit. Grab your $34 Forex No Deposit Bonus and start your live Forex trading to win big cash prize. Link: $34 Forex No Deposit Bonus Contest Available to: All new clients Forex $50 No Deposit Bonus Contest Duration? Registration is open till

read more

Forex Featured BrokerSocial Trading

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories