17.09.201811:22 Forex Analysis & Reviews: EUR / USD. Week review. Technically, the fall of the pair is more preferable

24-hour timeframe

The beginning of the week promises to be very interesting in terms of macroeconomic data, although there will not be too many of them. On Monday, the consumer price index will be published in the euro area. On Wednesday, Mario Draghi, the chairman of the ECB, will make a speech, which recently rarely pleases us with his speeches. In the States, this week will be relatively empty, without important macroeconomic reports. However, we continue to draw the attention of traders to the fact that the key factors that continue to exert a strong influence on the movement of the pair remain the topics of the trade war between the States and China and the political scandal in the White House, although, on this topic, no new messages have been received for the last week. So far, we can state the fact that despite the already quite long, though not too strong, strengthening of the euro, it was not possible to overcome the Senkou Span B line on the daytime timeframe at the first attempt. This indirectly indicates that the US currency can still move to a new downtrend at any time. Confront this will be Donald Trump, who understands that the more expensive a dollar, the more difficult it is to serve America's huge public long. There is still only one question open, is Trump waiting for the full solution of the issue with Beijing, or will he start a purposeful fight against the "expensive" dollar right now?

Trading recommendations:

For the EUR / USD currency pair, this week, it is recommended to follow the Senkou Span B. If traders manage to overcome it, and at the same time, break through the previous price peaks, this will significantly increase the chances of continuing to strengthen the euro with a target of 1.1790.

The sell-positions are recommended to be considered in the long term if traders return below the critical line (1.1515). In this case, the dollar can move to a new long period of growth with the first goal of the support level of 1.1357.

In addition to the technical picture, one should also take into account the fundamental data and the time of their release.

Explanations to the illustration:

Ichimoku Indicator:

Tenkan-sen is a red line.

Kijun-sen is a blue line.

Senkou Span A is a light brown dotted line.

Senkou Span B - a light purple dotted line.

Chinkou Span is a green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD indicator:

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