4-hour timeframe

The amplitude of the last 5 days (high-low): 85p - 83p - 31p - 108p - 47p.

Average amplitude for the last 5 days: 71p (86p).

The EUR/USD currency pair on Thursday, January 17th, is trading for the second day in a row near the support level of 1.1386 and can neither overcome it nor rebound from it. Instrument volatility also dropped dramatically, yesterday it was only 47 points, today it is hardly more. There were no new and important macroeconomic events over the past day and today. The consumer price index for December was published in the eurozone, but the real value of this indicator in all time estimates fully coincided with the forecast, therefore no market reaction to this publication followed. Although inflation in Europe continues to slow down and is already 1.6% y/y. The currency pair completely ignored all the events of recent days associated with Brexit. Although these events are less relevant to the euro currency than to the pound, nevertheless we could expect at least some kind of reaction. No new data came from the United States either, although the "Shutdown" continues, and this is already beginning to seriously worry investors. However, given the growth of the US dollar in recent days, this event does not cause a panic reaction in the market. In the current situation, we can only expect new data from the US, from the White House and the development of the situation with the same Brexit, the epic with which can now begin anew and it is not known how long it will continue.

Trading recommendations:

The EUR/USD pair retains the prospects of a downward movement, but still cannot overcome the level of 1.1386. Thus, it is recommended to open new short positions after bears overcome the level of 1.1386 with the target of 1.1314.

Buy orders can be considered not earlier than the bulls overcoming the level of 1.1487 and the critical line. In this case, the longs with the target of 1.1560 will become relevant again.

In addition to the technical picture, fundamental data and the timing of their release should also be taken into account.

Explanation of illustration:

Ichimoku Indicator:

Tenkan-sen-red line.

Kijun-sen – blue line.

Senkou span a – light brown dotted line.

Senkou span B – light purple dotted line.

Chikou span – green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD:

Red line and histogram with white bars in the indicator window.