Strong consolidation in the forex market – dollar VS euro.

After a series of central bank meetings, the foreign exchange market entered a phase of strong consolidation.

USDX consolidation

This consolidation is clearly visible by the damping fluctuations in the US dollar index – USDX. Continue reading

ECB restarts QE. Decision of September 12, 2019

ECB Monetary policy decision.

At today’s meeting the Governing Council of the ECB took the following monetary policy decisions:

mario-draghi-ecb2

(1) The interest rate on the deposit facility will be decreased by 10 basis points to -0.50%. The interest rate on the main refinancing operations and the rate on the marginal lending facility will remain unchanged at their current levels of 0.00% and 0.25% respectively. Continue reading

Bear trap on the EURCHF currency pair

The EURCHF currency pair has been in a downtrend for 4 months.

EURCHF Daily-050919

For the last 20 days, we have seen consolidation on the pair, which is highlighted in the chart by a blue rectangle. Over the past three days, we have seen an unsuccessful attempt to break through the lower edge of the consolidation range, which led to the formation of a bear trap on the EURCHF. Continue reading

EURUSD – traders looking for direction

In the previous article I noted the formation of a technical triangle on the euro-dollar currency pair (on the chart it is a red triangle). The breakdown of the lower edge of this triangle led to the removal of euro buyers’ stops and the impulse movement down almost by one figure.

EURUSDH4-070519

However, this breakdown turned out to be false and euro buyers were able to return the pair inside the triangle and return to the balance of supply and demand. Continue reading

Euro-dollar volatility at minimum values

The daily volatility of the euro-dollar currency pair (EURUSD) on the foreign exchange market has reached its lowest levels in the last five years.

EURUSDDaily-volatility
Such a low value of the daily indicator ATR (14) was last observed in June 2014. Continue reading

Technical picture on the EURUSD currency pair in anticipation of the FOMC

The euro-dollar currency pair is in consolidation for 5 months. The consolidation range is highlighted on the daily chart with a blue rectangle and limited to the range of values ​​1.12145-1.15000.

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But any ranges at some point end. It’s time for traders to make a decision. Continue reading

Historic ECB monetary policy decision -13 Dec. 2018

At today’s meeting the Governing Council of the European Central Bank (ECB) decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively.

mario-draghi-ecb2

The Governing Council expects the key ECB interest rates to remain at their present levels at least through the summer of 2019, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to, 2% over the medium term. Continue reading

Euro-dollar currency pair (EURUSD) is consolidating in triangle

Yesterday we wrote on our website about the triangle formed on the US dollar index – Geometric metamorphosis of the US dollar index (USDX).

The triangle on the pair EURUSD-121218

On the EURUSD currency pair, the figure of technical triangle has also formed. Continue reading

Europe challenges dollar dominance

Trade wars and an endless stream of US sanctions force even America’s close allies to work out measures to protect their own financial systems and business.

EURvsUSD

The European Commission plans in the near future to submit its proposals for replacing the dollar in European financial transactions. Continue reading

Euro-dollar on forex – triangle technical figure

The agreement between US  and China at the last G20 summit led to a decrease in tensions in financial markets. The risk appetite led to demand, including for the single European currency. However, the long-term trend of the US dollar growth on forex is still in force.

EURUSDDaily-dollar growth trend
What technical levels do traders of the EURUSD pair need to monitor in the foreign exchange market? Continue reading

EURUSD technical analysis – a delicate balance in the market

The last five months, the EURUSD currency pair has been trading in a fairly wide range on the forex market.

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On the pair chart, this range is highlighted with a blue rectangle and is limited to 1.13000 -1.18500. Continue reading

Four days the euro consolidates on Forex – where further?

The fourth trading day, the EURUSD currency pair is in consolidation within a strong support level.

Consolidation on EURUSD-050618

Consolidation occurs against a background of declining day volatility on the Candles indicator and ATR. Continue reading

The growth of the US dollar on forex – ahead a strong resistance

The last five weeks are continuing the US dollar rally in the forex market.

Forecast of the US dollar

Next week, the US dollar index (USDX) will approach a strong resistance. Continue reading

Inside bar and triangle on the euro dollar

Yesterday, forex trading closed for the EURUSD currency pair by forming an inside bar.

Inside bar and triangle on EURUSD

As very often happens in such cases, the formation of the inside bar led to the formation of a technical figure triangle. Continue reading

Large forex option on EURUSD – a technical analysis of the pair

After softer inflation data in the US, the EURUSD currency pair broke through resistance.

Option on the EURUSD-110518As a result, we see the formation of a reversal figure on the EURUSD pair. Continue reading

Consolidation on the EURUSD led to the formation of a technical triangle

On the currency pair EURUSD, the technical figure triangle (purple on the chart) was formed.

Consolidation on the euro-dollar pair

Yesterday ended with the formation of an inside bar. Continue reading

The growth of the dollar stopped at the key levels – the analysis of the main pairs on Forex

As a result of the rapid growth of the US dollar, the main currency pairs on forex reached key levels.

Analysis of the dollar index

Exit from the technical figure of the triangle, the breakthrough of the mirror level of 90.850 and the exit from the long-term descending channel led to the rally on the US dollar (USDX).

The upward movement stopped by testing the next strong mirror resistance level at 92.400.

At the same time, the euro reached the level of 1.20, the British pound – 1.36, the Australian dollar fell to the key level of 0.75, the Canadian dollar reached 1.29, and the Japanese yen closely approached the level of 110.00.

EUR analysis-020518

The euro after a long consolidation at the perennial highs came down from the long-term rising channel. This was also due to the breakout of the triangle down and the breakdown of key support 1,21550.

Currently, this level is a mirror resistance and with a high probability the euro can test it before continuing its decline.

Analysis of the British pound

The fall of the British pound was due to poor economic data and, as a consequence, a decrease in the probability of an increase in the interest rate by the Bank of England. The pound left the growing channel for the first time in a long time and stopped only at a strong mirror support level of about 1.36.

Today, the data on the index of business activity in the construction sector in the UK is expected, but they are unlikely to help reverse the trend to reduce the pound due to extremely bad weather in the reporting period.

The Fed’s decision on the interest rate is expected this evening. Since this meeting will not be accompanied by a press conference, experts do not pawn the possibility of raising rates on it. The main attention will be paid to the accompanying statement to the decision. In the case of a more rigid position of the regulator, one can expect a continuation of the trend towards strengthening the US dollar.

Let me remind you that the latest data on inflation in the US, although it showed a slight slowdown in inflation over the past month, annual inflation reached target 2.0%. This gives all grounds for raising the rate at the next meeting.

Correction on the dollar, which we are observing today, is quite possibly connected with the fixing by the bulls on the dollar of profit in the lead-up to the Fed meeting to reduce risks.

US Dollar Index (USDX) tests a long-term trend line

The increase in the yield of US government bonds led to the strengthening of the US dollar across the entire spectrum of the foreign exchange market.

Technical Analysis of the US Dollar Index

At the moment, the US dollar index (USDX) has come close to the border of a long-term falling parallel channel. Continue reading

Euro is testing the key trend line

The second day of the decline in the EURUSD currency pair led to testing by a pair of long-term ascending trend lines.

Euro is testing the key trend line EURUSD Daily
This trend line is the lower boundary of a long-term growing symmetrical channel. Continue reading

Euro – the spring continues to shrink

Before the close of the US market, less than two hours are left, and on the EURUSD currency pair another daily doji inside candle is formed.

Inside Doji-Bar on EURUSD Daily
It is unlikely that anything will change much in the last trading hours. Continue reading