{"id":114411,"date":"2017-10-09T07:20:47","date_gmt":"2017-10-09T11:20:47","guid":{"rendered":"http:\/\/countingpips.com\/?p=114411"},"modified":"2017-10-09T06:55:48","modified_gmt":"2017-10-09T10:55:48","slug":"eurusd-test-of-the-b-b-channel-expected","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/10\/eurusd-test-of-the-b-b-channel-expected\/","title":{"rendered":"EURUSD: test of the B-B channel expected"},"content":{"rendered":"<div id=\"inves-2002669567\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">October 9, 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 6<sup>th<\/sup>\u00a0of October, trading on the euro closed up. Before the US data was released, the euro\/dollar pair was trading within a 30-pip range of 1.1686 to 1.1716. Volatility on the pair surged as the NFP report was being published. The rate initially reacted with a 40-pip drop to 1.1670, followed by a 69-pip surge to 1.1739. These sharp fluctuations continued for a couple of hours before the pair entered a sideways trend.<\/p>\n<p>The number of new jobs created outside the agricultural sector in the US fell by 33,000 against a forecast of +90,000. The reading for July was revised from 189,000 to 138,000, and for August from 156,000 to 169,000. The aggregate revision comes to -38,000.<\/p>\n<p>The workforce participation rate grew from 62.9% to 63.1%. Unemployment dropped from 4.4% to 4.2% (forecast: 4.4%). The average hourly earnings index in the US for June came to 0.5% (forecast: 0.3%, previous reading revised from 0.1% to 02%).<\/p>\n<p>Traders focused on the more positive aspects of the report, but the dollar\u2019s attack petered out regardless. News that North Korea is planning another missile test and that Hurricane Nate is approaching the Gulf of Mexico beat the dollar into submission.<\/p>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p><div id=\"inves-449587787\" 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 Germany: industrial production (Aug);<\/li>\n<li>19:00 Eurozone: ECB&#8217;s Lautenschl\u00e4ger Speech;<\/li>\n<li>n\/a US: Columbus Day;<\/li>\n<li>n\/a Canada: Thanksgiving Day.<\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/Analytics\/2017\/10\/eur_091017.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD rate on the hourly. Source: TradingView<\/p>\n<p>From the D2 line, the euro recovered to the balance line. During trading in Asia, the price jumped to 1.1748. In my forecast, I\u2019m expecting a rebound to the LB balance line, with a subsequent jump to 1.1756. Given that the US and Canada have national holidays today, I\u2019ve set a low target.<\/p>\n<p>I tend not to pay attention to the news on Mondays as markets tend to ignore it. They need to digest the payrolls data and then decide how they will respond if the head and shoulders model start to be realised on the daily and weekly timeframes. For the formation to be complete, the right shoulder needs to form with a target of around 1.1880 by 23\/10\/17. By the end of October, downwards movement should resume. From 1.1880, we can expect the rate to drop.<\/p>\n<p>There are two channels on the hourly timeframe; A-A and B-B. For the right shoulder to form, we need to break out of 1.1750 and 1.1790 levels. Exiting the B-B channel would open the way to 1.1880. If sellers manage to bring the rate down below 1.17 by Wednesday, we can expect the rate to continue falling.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: test of the B-B channel expected<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Friday the 6th\u00a0of October, trading on the euro closed up. Before the US data was released, the euro\/dollar pair was trading within a 30-pip range of 1.1686 to 1.1716. Volatility on the pair surged as the NFP report was being published. The rate initially reacted with a 40-pip drop [&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-114411","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/114411","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=114411"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/114411\/revisions"}],"predecessor-version":[{"id":114412,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/114411\/revisions\/114412"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=114411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=114411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=114411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}