{"id":116534,"date":"2017-11-15T07:22:01","date_gmt":"2017-11-15T12:22:01","guid":{"rendered":"http:\/\/countingpips.com\/?p=116534"},"modified":"2018-06-01T15:49:13","modified_gmt":"2018-06-01T15:49:13","slug":"eurusd-u3-ma-line-providing-resistance","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/11\/eurusd-u3-ma-line-providing-resistance\/","title":{"rendered":"EURUSD: U3 MA line providing resistance"},"content":{"rendered":"<div id=\"inves-1032899846\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">November 15, 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 Tuesday the 14<sup>th<\/sup>\u00a0of November, trading on the euro\/dollar pair closed up at around 1.18, with an intraday range of 140 pips. The euro rose thanks to positive data from Germany and the Eurozone, growth on the euro crosses, and a decline in US 10Y bond yields. The dollar showed some mixed dynamics against the majors as there were a lot of important news releases.<\/p>\n<p>It was surprising that volatility didn\u2019t rise when the heads of central banks were giving their speeches at the conference in Frankfurt. They had a lot to say. However, given that the market didn\u2019t react to their speeches, it\u2019s as if no one said anything.<\/p>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>10:00 Australia: RBA assistant governor Luci Ellis\u2019 speech.<\/li>\n<li>10:45 France: CPI (Oct).<\/li>\n<li>11:00 USA: Fed\u2019s Evans speech.<\/li>\n<li>12:30 UK: claimant count change (Oct), ILO unemployment rate (Sep), average earnings (Sep).<\/li>\n<li>13:00 Eurozone: trade balance (Sep), ECB\u2019s Praet speech.<\/li>\n<li>13:00 UK: MPC member Haldane\u2019s speech.<\/li>\n<li>16:00 UK: MPC member Broadbent\u2019s speech.<\/li>\n<li>16:30 USA: CPI (Oct), NY Empire State manufacturing index (Nov), retail sales (Oct).<\/li>\n<li>18:30 USA: EIA crude oil stocks change (10 Nov).<\/li>\n<\/ul>\n<p align=\"center\"><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/Analytics\/2017\/11\/eur_151117.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD rate on the hourly. Source: TradingView<\/p>\n<p>After the 39-hour flat, buyers broke up the upper boundary of the A-A channel. I\u2019m convinced that as the price crossed 1.1690, protective stop levels kicked in on traders\u2019 short positions, which gave the price an additional bullish impulse.<\/p><div id=\"inves-828528565\" 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 rate continued upwards from the LB balance line with the help of the euro crosses. From a technical point of view, there\u2019s no confusion surrounding the euro\/dollar pair. The price broke through the resistance and continued upwards, while European data attracted more buyers for the euro. It\u2019s good that I noticed that the head and shoulders model had failed when I did.<\/p>\n<p>The euro\u2019s rise was halted by the U3 MA line (SMA with a period of 55 and a 1% diversion). This is a strong resistance. If buyers can\u2019t keep up their momentum, the price will correct to the LB balance line, which currently runs through 1.1708.<\/p>\n<p>My forecast is formed of two parts. In the first half of the day, I\u2019m expecting the 225<sup>th<\/sup>\u00a0degree or 1.1825 level to be tested. Buyers won\u2019t give up without a fight, so I think there will be at least one more attempt to go upwards. From there, I\u2019m expecting a correction to 1.1768. This is just me thinking out loud at the moment as what I really want to know is what kind of trading volume we\u2019ll see as the price approaches 1.1825. I\u2019ll post the second half of my forecast later in the day, during the European session.<\/p>\n<p>There\u2019s one more very important aspect to consider. This is on the 8-hour timeframe of the euro index at the upper boundary of the sideways channel, which has formed over the last 56 days. Now we need to wait and see whether or not there will be a rebound from this boundary. Technical analysis of the euro index is important for the crosses. If the crosses start to undergo a correction, the euro will come under pressure against the dollar.<\/p>\n<p>Source:\u00a0<a href=\"https:\/\/alpari.com\/en\/analytics\/reviews\/market_sessions\/23021_15112017\/\" target=\"_blank\" rel=\"noopener\">EURUSD: U3 MA line providing resistance<\/a><\/p>\n<p>&nbsp;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Tuesday the 14th\u00a0of November, trading on the euro\/dollar pair closed up at around 1.18, with an intraday range of 140 pips. The euro rose thanks to positive data from Germany and the Eurozone, growth on the euro crosses, and a decline in US 10Y bond yields. The dollar showed [&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-116534","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116534","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=116534"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116534\/revisions"}],"predecessor-version":[{"id":116535,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/116534\/revisions\/116535"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=116534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=116534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=116534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}