For the last trading day, the currency pair Euro / Dollar showed low volatility of 57 points. As a result, it continued to form a correction. From the point of view of technical analysis, we have a corrective move from the value of 1.1176, where the quote has already reached the predicted level of 1.1300, forming a slight stagnation-rollback on it. The information and news background had a long-awaited vote in the British Parliament regarding the "new" version of the agreement on the country's withdrawal from the European Union. As you have already guessed, the so-called new agreement with the old holes flew into the pipe, 391 deputies voted against it, and 242 are in favor of it. The head of the European Commission, Jean-Claude Juncker, held telephone talks with British Prime Minister Teresa May on the situation surrounding the UK's exit from the EU, but they did not agree to hold any meetings on this topic in the coming days. If we look at the schedule of the Euro / Dollar, there are no significant changes, as if this circus has become so boring to the Europeans that even such a significant information background have gone by. What did the euro support in yesterday's session? Most likely, it concerns the news background. Yesterday, inflation occurred in the United States, which showed a slowdown from 1.9% to 1.5%, with a forecast of 1.6%.
Today, new stages of voting in parliament begins. It talks about the decision on withdrawing Britain from the EU without a deal referring to what we call as hard Brexit. If they do not agree on anything, then on Thursday, it will be a question of postponing Brexit's date, upon referred to buy the experts. The information background is certainly strong. One can even say positive for the pound and the euro. However, with regards to how the European currency will react to it and whether it will react at all is, of course, a question. At the same time, according to the news background, we have statistics from the United States, where the data is again weak. The volume of orders for durable goods (m / m) in January showed a decline from 1.2% to -0.5%. The base producer price index (PPI) (m / m) for February has a similar decline, from 2.0% to 1.9%. Thus, such a general background can support a single currency.
Analyzing the current trading chart, we see that after the price approaches the level of 1.1300, there has been a slight slowdown, where the quotation forms two-digit doji-type candles. It is likely to assume that in case of a fixation higher than 1.1328, the upward interest will resume, pulling us to 1.1360-1.1375. In any case, the traders will also have to consider the opposite scenario, certainly if the bullish interest fades away and the level of 1,1300 plays the role of resistance. And in case of price fixing lower than 1.1265, the way to levels 1.1240-1.12214 will be opened. (Method - work on both sides).
Based on the available data, it is possible to decompose a number of variations, let's consider them:
- Consider buy positions in the case of leveling and fixing higher than 1.1325, with the prospect of 1.1360-1.1375.
- Consider positions for sale after fixing the price lower than 1.1265, with a primary perspective of 1.1240-1.1214.
Analyzing a different sector of timeframes (TF ), there was a downward interest in the short term amid a slowdown and development to the level of 1.1300. Intraday perspective is still focused on correction - upward interest. Medium term retains a downward interest.
Weekly volatility / Measurement of volatility: Month; Quarter; Year
Measurement of volatility reflects the average daily fluctuation , with the calculation for the Month / Quarter / Year.
(March 13, was based on the time of publication of the article)
The current time volatility is 13 points, which is considered a low value. It is likely to assume that the volatility of the day will remain within the daily average.
Zones of resistance: 1.1300 **; 1.1440; 1.1550; 1.1650 *; 1.1720 **; 1.1850 **; 1.2100
Support areas: 1.1214 **; 1.1120; 1.1000
* Periodic level
** Range LevelThe material has been provided by InstaForex Company - www.instaforex.com