{"id":110100,"date":"2017-08-01T07:56:13","date_gmt":"2017-08-01T11:56:13","guid":{"rendered":"http:\/\/countingpips.com\/?p=110100"},"modified":"2017-08-01T07:56:13","modified_gmt":"2017-08-01T11:56:13","slug":"eurusd-after-a-surge-in-volatility-a-slide-is-on-the-cards","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/08\/eurusd-after-a-surge-in-volatility-a-slide-is-on-the-cards\/","title":{"rendered":"EURUSD: after a surge in volatility, a slide is on the cards"},"content":{"rendered":"<div id=\"inves-3075708940\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">August 1, 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 Monday, trading on the euro\/dollar pair closed in the black. During Europe\u2019s trading, the euro corrected downwards to 1.1723. The euro then surged to 1.1845 on the back of US data, which was mixed. Pending home sales grew while the Chicago PMI fell.<\/p>\n<p>Most experts believe that the dollar\u2019s collapse was brought about by the weak Chicago PMI data. Personally, I don\u2019t think the data can be so significant as to induce a surge of more than 100 pips. Dollars were sold on the back of the news that Trump fired Anthony Scaramucci from the post of White House communications director after only 10 days in the role.<\/p>\n<p>Investors started selling the dollar due to a lack of faith in the Trump administration. In the last week, both press secretary Sean Spicer and chief of staff Reince Priebus have left their posts. These events have strengthened gold and the yen.<\/p>\n<p><strong>US statistics:<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>Chicago PMI: 58.9 (expected: 61.5, previous: 65.7).<\/li>\n<li>Pending home sales: +1.5% (expected: +1%).<\/li>\n<\/ul>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p><div id=\"inves-3465065811\" 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<ul class=\"list list_type_disc\">\n<li>09:00 UK: Nationwide housing prices (Jul);<\/li>\n<li>09:30 Australia: RBA commodity index SDR (Jul);<\/li>\n<li>10:55 Germany: Markit manufacturing PMI (Jul), unemployment change (Jul);<\/li>\n<li>11:00 Eurozone: Markit manufacturing PMI (Jul);<\/li>\n<li>11:30 UK: Markit manufacturing PMI (Jul);<\/li>\n<li>12:00 Eurozone: GDP (Q2);<\/li>\n<li>15:30 USA: CPI core (Jun), consumer spending (Jun), personal income (Jun);<\/li>\n<li>16:30 Canada: Markit manufacturing PMI (Jul);<\/li>\n<li>16:45 USA: Markit manufacturing PMI (Jul);<\/li>\n<li>17:00 USA: ISM manufacturing PMI (Jul), construction spending (Jun), ISM prices paid (Jul).<\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/Analytics\/2017\/08\/eur_010817.png\" alt=\"\" \/><\/p>\n<p align=\"center\">EURUSD rate on the hourly. Source: TradingView<\/p>\n<p>On Monday, the rate didn\u2019t make it as far as I\u2019d expected. The downwards correction ended 8 pips away from the LB balance line at 1.1723. Fundamental factors have been dominating the market. During this time, technical signals haven\u2019t been working at all. Trading volume was lower yesterday than it was on the 28<sup>th<\/sup>\u00a0of July.<\/p>\n<p>Growth stopped at the U3 MA line (price receded 1% from LB). The 157<sup>th<\/sup>\u00a0degree runs through this point. In order to understand what to expect from the market on Tuesday, look at the dynamics of the euro on the 20<sup>th<\/sup>, 21<sup>st<\/sup>\u00a0and 27<sup>th<\/sup>\u00a0of July.<\/p>\n<p>Since the trend is bullish, before going into a correctional phase, buyers could hit a new nigh. If trading in Europe opens relatively calmly, and a new high isn\u2019t reached within 2 hours, we can expect the euro to drop to the 45<sup>th<\/sup>\u00a0degree at 1.1791.<\/p>\n<p>The speed of price movements and trading volume are very important indicators. Without them, there\u2019s no way of understanding what\u2019s happening at this or that level. Right now, with volume low on the market, the price is consolidating below the 157<sup>th<\/sup>\u00a0degree. Buyers won\u2019t be able to go higher without accumulating some more positions. From here, we could see the price drop to 1.1807. If that level doesn\u2019t hold, the way to 1.1791.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/analytics\/reviews\/market_sessions\/20900_01082017\/\">EURUSD: after a surge in volatility, a slide is on the cards<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Monday, trading on the euro\/dollar pair closed in the black. During Europe\u2019s trading, the euro corrected downwards to 1.1723. The euro then surged to 1.1845 on the back of US data, which was mixed. Pending home sales grew while the Chicago PMI fell. Most experts believe that the dollar\u2019s [&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-110100","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/110100","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=110100"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/110100\/revisions"}],"predecessor-version":[{"id":110101,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/110100\/revisions\/110101"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=110100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=110100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=110100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}