08.08.201908:37 Forex Analysis & Reviews: Burning forecast for EUR/USD on 08/08/2019 and trading recommendation

The bizarre US President Donald Trump, without wasting time, again criticized the Federal Reserve, accusing them of incompetence. The head of the United States believes that the Federal Reserve is too proud to admit its mistakes in the fact that he acted too hastily and tightened too sharply.

Trump verbally puts pressure on the Fed, referring to the inaction of the system, which does not seek to further reduce the base interest rate. Of course, the Federal Reserve is not under the control of the head of the US state, it has already been reminded very often by Jerome Powell, but the emotional component of the market thinks differently. Thus, the confidence of the crowd that at the autumn meeting of the Fed will reduce the rate increases, which puts pressure on the dollar.

Today, in terms of the economic calendar, one of the most boring days, the only thing there is applications for unemployment benefits in the United States. Their total number could fall by nine thousand. In particular, the number of initial applications should remain at the same level, and repeated ones will decrease by nine thousand. But given the insignificance of the changes themselves, the market will not especially notice them.

The EUR/USD pair, as expected in the previous forecast, the quotation has kept fluctuation within the previously formed framework of 1.1180/1.1250, where due to the informational background there was a move to the upper boundary. Considering everything that happens in general terms, we see that due to pressure on the dollar, stagnation is delayed for the umpteenth time, which, in principle, is not bad, since accumulation makes it possible to work both on the breakdown of boundaries and within them.

It is likely to assume that the movement within the boundaries of 1.1180-1.1250 (+/-10p.) Will continue, where traders are better off using the "Breakout" method, analyzing clear price consolidations. Concretizing all of the above, you can stretch orders:

• We consider long positions in the event of 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 consolidation of the price lower than 1.1170, with the prospect of a move to 1.1150-1.11100.

Due to the pressure of the information background, indicator analysis predictably unfolded, where indicators of technical instruments unanimously signal an upward trend. But do not lose sight of the fact that the quotation still remains within the framework of the lateral fluctuation and, in fact, the indicators on the minute and intraday periods are volatile.