The market will remain in steady lateral movement until Thursday, when the final vote in the House of Commons under the divorce agreement will be held at seven in the evening London time. Thus, the story with Brexit goes into standby mode, and there is an opportunity to look at what is happening outside of Misty Albion. However, as if by request, the macroeconomic calendar, in fact, is completely empty. At least some interest may be caused only by data on home sales in the secondary market of the United States. The number of which should be reduced by 0.7% from 5.49 million to 5.45 million. The changes are not significant, so in themselves, they are not able to have a significant impact on the market. If we can recall that in addition to voting in the House of Commons, investors are also waiting for a meeting of the Board of the European Central Bank, it becomes obvious that only an extremely high-profile event will be able to bring the market out of its stupor.
Secondary Home Sales (United States):
The EUR / USD pair showing steady upward interest reached 1.1179, where the periodic level is located [1.1180]. As a result of which there was a local slowdown with a rather narrow amplitude of 40 points. By analyzing the fluctuations in more detail, we see a characteristic inertial motion, without any significant corrections. In fact, the single currency, in a short period of time, gained almost 300 points in weight, having as a result not just overbought, but a rush of interest, expressed in the vertical course. In terms of a general review of the trading chart, we see an attempt to change the clock basis of the trend, where the status of an oblong correction has already been obtained.
It is likely to assume that the existing fluctuation will be sluggish within the variable boundaries of 1.1140 / 1.1180, where working within the framework is extremely risky, and a more rational technique is to break the boundaries.
Concretizing all of the above into trading signals:
– We consider long positions, in the case of a clear price fixing higher than 1.1185.
– We consider short positions in the case of a clear fixation of the price lower than 1.1135.
From the point of view of a comprehensive indicator analysis, we see that most of the time, periods signal an upward trend due to the general market background. In turn, short-term periods alternately signal sales, due to walking in the extended range.
The material has been provided by InstaForex Company – www.instaforex.com
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