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13.08.2019 08:38 AM
Burning forecast for EUR/USD on 08/13/2019 and trading recommendation

The news background favors, since today inflation will come out in the United States, which is almost the most important macroeconomic indicator, on which the decision of the monetary authorities on the level of the refinancing rate depends. Given the enormous impact of the Federal Reserve on all financial markets, it is not surprising that inflation in the United States is almost the most significant indicator in the world. Moreover, if it is expected to grow from 1.6% to 1.7%, which will further strengthen the position of the dollar in relation to all currencies in the world.

USA 12:30 London time. - Annual inflation rate: Prev 1.6% ----> Prog. 1.7%

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The EUR/USD pair, tirelessly outlines the sideways movement for the sixth consecutive day, where the quote sequentially fulfills the boundaries of 1.1180/1.1250 having a slight deviation of +/- 10 points at the same time. Considering everything that happens in general terms, we see that we have a versatile interest, which was caused by the information background to a greater extent. Whether the market trend has changed, no way, we still maintain a downward mood, thereby, no matter how much the position of the expensive dollar suits the global downward trend.

It is likely to assume that movement within the boundaries of 1.1180-1.1250 (+/- 10p.) will still remain for some time, where it is possible to work both inside the corridor and for breakdown. The most profitable position in this case is the "work on the breakdown" method, since we will focus on the main course of the market.

Specifying all of the above in trading signals:

• We consider long positions in case of a clear price consolidation higher than 1.1250, with the prospect of a move to 1.1280-1.1300.

• We consider short positions in case of a clear price consolidation below the 1.1167-1.11160 punctures, where the prospect of the move is in the values of 1.1100-1.1080.

From the point of view of a comprehensive indicator analysis, we see that the minute and intraday periods are prone to decrease due to the control approach to the lower boundary of the flat. Global time periods, such as the daily timeframe, still hold upward interest, but the indicators tend to the neutral phase, which already suggests a clear stop expressed in flat.

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Dean Leo,
Especialista em análise na InstaForex
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