{"id":110043,"date":"2017-07-31T07:45:20","date_gmt":"2017-07-31T11:45:20","guid":{"rendered":"http:\/\/countingpips.com\/?p=110043"},"modified":"2017-07-31T07:45:20","modified_gmt":"2017-07-31T11:45:20","slug":"eurusd-rebound-to-the-45th-degree","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/07\/eurusd-rebound-to-the-45th-degree\/","title":{"rendered":"EURUSD: rebound to the 45th degree"},"content":{"rendered":"<div id=\"inves-2167234854\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">July 31, 2017<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By Gabriel Ojimadu, Alpari<\/strong><\/p>\n<div class=\"reviews-item__content\">\n<p><strong>Previous:<\/strong><\/p>\n<p>On Friday the 28<sup>th<\/sup>\u00a0of July, the euro\/dollar closed up. Buyers brought the rate back to 1.1764, taking advantage of US data and a weak US dollar. The US\u2019s preliminary GDP reading for the second quarter of 2017 came out as expected at 2.6%. Despite the high GDP value, price components came out at low levels. The previous reading was revised downwards.<\/p>\n<p>US 10Y bond yields fell by 2.14% to 2.287%, bringing the dollar down with it. Canadian data heaped further pressure on the dollar. Canada\u2019s GDP grew by 0.6% in May (forecast: 0.6%, previous reading: 0.2%). This high value triggered a drop on the USDCAD pair.<\/p>\n<p>US statistics:<\/p>\n<ul class=\"list list_type_disc\">\n<li>US preliminary GDP for the second quarter of 2017 came out at 2.6% (forecast: 2.6%, previous reading revised from 1.4% to 1.2%).<\/li>\n<li>The Michigan University consumer sentiment index fell to 93.4.<\/li>\n<li>Canada\u2019s GDP in May grew by 0.6% (forecast: 0.6%, previous reading: 0.2%).<\/li>\n<\/ul>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>09:00 Germany: retail sales (Jun);<\/li>\n<li>11:30 UK: net lending to individuals (Jun), M4 money supply (Jun), mortgage approvals (Jun);<\/li>\n<li>12:00 Eurozone: CPI (Jul), CPI core (Jul), unemployment rate (Jun);<\/li>\n<li>15:30 Canada: raw material price index (Jun), industrial product price (Jun);<\/li>\n<li>16:45 USA: Chicago PMI (Jul);<\/li>\n<li>17:00 USA: pending home sales (Jun).<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/Analytics\/2017\/07\/eur_310717.png\" alt=\"\" \/><\/p>\n<p align=\"center\">EURUSD rate on the hourly. Source: TradingView<\/p><div id=\"inves-173222759\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>The euro\/dollar stopped its upwards movement around the 90<sup>th<\/sup>\u00a0degree, close to the 1.1777 high from the 27<sup>th<\/sup>\u00a0of July. This isn\u2019t a particularly importance resistance, but today is Monday, so we could see a reversal of Friday\u2019s movements. The odds of this working out against the trend are not very high. However, with the indicators on the 4-hour timeframe having reversed downwards, there is a window for a correction.<\/p>\n<p>On Friday, the latest weekly COT (Commitments of Traders) report from the CFTC came out, according to which, last week, large speculators reduced their long and short positions. Small speculators saw an increase in short positions and a decrease in long ones.<\/p>\n<p>Large speculators\u2019 short positions fell by 375 to 86,206 contracts, while short positions fell by 2,575, to 64,720 contracts. Net long positions are currently at 21,486 contracts. Open interest contracts have risen by 14,423 to 543,872, up from 529,449 the previous week.<\/p>\n<p>Large speculators increased their hedged positions ahead of the FOMC meeting. Small speculators, in contrast, shorted the euro. After the meeting, the euro went up, but since the last 3 days of the week aren\u2019t included in the report, it\u2019s difficult to say how they adjusted their long and locked positions. You can find the reports themselves on the open channel \u201ctelegram:@notes for traders\u201d.<\/p>\n<p>In Asia, the euro should correct to around 1.1731. In my forecast, I\u2019m expecting to see a downwards correction to 1.1710, at the 45<sup>th<\/sup>\u00a0degree. Given that the hourly oscillator has reversed upwards, but is looking down on the 4-hour timeframe, we could see some swings at the start of the European session. Ideally, I\u2019d like to see the euro fall to 1.1670\/75. It\u2019s not worth trying to keep short positions open with a bullish trend. Either their working volume must be reduced, or they should be closed when the rate drops. For this, we can use 1.1710 and 1.1683. I\u2019m not looking at any news today.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/analytics\/reviews\/market_sessions\/20875_31072017\/\">EURUSD: rebound to the 45th degree<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Friday the 28th\u00a0of July, the euro\/dollar closed up. Buyers brought the rate back to 1.1764, taking advantage of US data and a weak US dollar. The US\u2019s preliminary GDP reading for the second quarter of 2017 came out as expected at 2.6%. Despite the high GDP value, price components [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-110043","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/110043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=110043"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/110043\/revisions"}],"predecessor-version":[{"id":110044,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/110043\/revisions\/110044"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=110043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=110043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=110043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}