{"id":119455,"date":"2018-01-12T07:20:17","date_gmt":"2018-01-12T12:20:17","guid":{"rendered":"http:\/\/countingpips.com\/?p=119455"},"modified":"2018-06-01T15:46:45","modified_gmt":"2018-06-01T15:46:45","slug":"eurusd-price-approaching-the-u3-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/01\/eurusd-price-approaching-the-u3-line\/","title":{"rendered":"EURUSD: price approaching the U3 line"},"content":{"rendered":"<div id=\"inves-2625944500\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">January 12, 2018<\/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 Wednesday the 10<sup>th<\/sup>\u00a0of January, the euro jumped after a report from Bloomberg that China was preparing to either reduce or stop its purchases of US government bonds. The Chinese regulator, however, dismissed these rumours.<\/p>\n<p>On Thursday the 11<sup>th<\/sup>\u00a0of January, the euro jumped again after the minutes of the ECB\u2019s latest meeting on monetary policy were disclosed. This sent Eurobonds up, along with the euro crosses and our main EURUSD pair. The European regulator remarked that the economic situation is improving, so it\u2019s possible that the bank could revise its monetary policy in the early stages of this year.<\/p>\n<p>The sharp rise of the single currency and weak US inflation data put the dollar under pressure. The producer price index for December dropped by 0.1% against a forecast of +0.2%, and a previous reading of +0.4% (a negative factor for the US Fed).<\/p>\n<p>On Thursday, trading on the euro closed up above 1.20. Now we\u2019ll look at the hourly chart and construct some intraday models for the past 3 days.<\/p>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p><div id=\"inves-3010095111\" 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>10:45 France: CPI (Dec).<\/li>\n<li>16:30 USA: CPI (Dec), retail sales (Dec).<\/li>\n<li>18:00 USA: business inventories (Nov).<\/li>\n<li>19:30 Germany: German Buba President Weidmann\u2019s speech.<\/li>\n<li>21:00 USA: Baker Hughes US oil rig count.<\/li>\n<\/ul>\n<p align=\"center\"><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/Analytics\/2018\/01\/eur_120118.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD hourly chart. Source: TradingView<\/p>\n<p>The only way to protect yourself from unexpected news items is through stop levels. Since the minutes of the ECB meeting were published, the euro has recovered to 1.2066, with this recovery extending into the Asian session. Growth stopped at around the 112<sup>th<\/sup>\u00a0degree. The area between the 112<sup>th<\/sup>\u00a0and 135<sup>th<\/sup>\u00a0degrees is a reversal zone, so the euro could drop to the LB balance line without hindrance during the European session.<\/p>\n<p>Since yesterday\u2019s upwards movement hasn\u2019t been erased, like it was on Wednesday, I think a triple top could form today. I\u2019ve gone for a triple top because in Asia, all the euro crosses are trading up. I\u2019m sure that on these rising crosses, buyers will try to reach new highs. So, once a new high is reached, if there\u2019s a double bearish divergence between the AO indicator and the price, we can start looking downwards.<\/p>\n<p>The target is 1.2075, with a closing price in the region of 1.2042. If the crosses reverse, the target will be 1.1984. If the crosses are falling, the 45<sup>th<\/sup>\u00a0degree won\u2019t stop sellers.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: price approaching the U3 line<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Wednesday the 10th\u00a0of January, the euro jumped after a report from Bloomberg that China was preparing to either reduce or stop its purchases of US government bonds. The Chinese regulator, however, dismissed these rumours. On Thursday the 11th\u00a0of January, the euro jumped again after the minutes of the ECB\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-119455","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/119455","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=119455"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/119455\/revisions"}],"predecessor-version":[{"id":119457,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/119455\/revisions\/119457"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=119455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=119455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=119455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}