After an unforeseen decline in the US dollar, the market is waiting with bated breath for what is going to happen next. So far, investors can hardly determine their sentiment. Meanwhile, the macroeconomic calendar is essentially empty.
By the end of the trading day, the United States will deliver its house price report. Thus, the US house price index is expected to drop by 0.4%. However, these data are unlikely to somehow affect the market. Yesterday, the market ignored the news about significant growth in new home sales in the US. Therefore, a slight decrease in house prices is unlikely to impress market participants. Consequently, all hope is for politicians and representatives of central banks. Their statements might bring the market back to life.
On the previous trading day, there was another round of Long positions in EUR/USD. Based on these positions, the quote managed to locally rise to the level of 1.1348 putting the recovery process that took place from the area of trading forces interaction at 1.1440/1.1500 at high risk. Interestingly, it was a speculative surge in activity and the price managed to return to the level of 1.1300. That was how the previous day ended.
Analyzing the current trading chart, it is possible to see that the quote fell locally to the value of 1.1269 at the start of the European session. However, after that the concentration of trading forces has shifted again to the level of 1.1300 forming a slowdown within the 1.1280/1.1305 area.
The quote continues to move randomly. It means that the strategy of local operations is working. Thus, it is better to hold on to it.
It can be assumed that price fluctuations at 1.1280/1.1305 may again lead to accumulation as well as to speculative excitement. In such a case, a breakout at the established boundaries would be the best strategy.
Consider buy deals above the 1.1310 level towards 1.1345-1.1380.
Consider sell deals below the 1.1280 level towards 1.1235-1.1200.
Based on the technical analysis of the GBP/USD pair, trading forces are concentrated within the range of 1.2500/1.2540. Similar events took place yesterday. However, this time, trading forces are accumulated above the level of 1.2500.
Most likely, the price fluctuation at 1.2500/1.2540 will end in the next few hours. In such a case, the best trading strategy will be to place pending orders by coordinates: buy at 1.2550 and sell at 1.2465. Consequently, there will be a chance of an entry into the local speculative leap.
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