{"id":119623,"date":"2018-01-15T08:10:52","date_gmt":"2018-01-15T13:10:52","guid":{"rendered":"http:\/\/countingpips.com\/?p=119623"},"modified":"2018-06-01T15:46:44","modified_gmt":"2018-06-01T15:46:44","slug":"eurusd-pair-is-overbought","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/01\/eurusd-pair-is-overbought\/","title":{"rendered":"EURUSD: pair is overbought"},"content":{"rendered":"<div id=\"inves-2939765231\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">January 15, 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 Friday the 15<sup>th<\/sup>\u00a0of January, trading on the euro closed up. After a breakout of the 1.2090 resistance, the single currency surged against the dollar to reach 1.2219. This rally was initially brought about by reports of progress being made in coalition talks in Germany. It was later revealed that Chancellor Markel had struck a deal with a rival party, the Social democratic Party, on forming a new government. The euro was further propped up by expectations that the ECB is soon to start reducing the scale of its QE program.<\/p>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>09:00 Japan: machinery orders (Dec).<\/li>\n<li>13:00 Eurozone: trade balance (Nov).<\/li>\n<\/ul>\n<p align=\"center\"><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/Analytics\/2018\/01\/eur_150118.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD hourly chart. Source: TradingView<\/p>\n<p>The fundamentals have pushed the euro into overbought territory. This zone is located between the U3 and U4 lines. The U3 MA line diverges from the LB (sma 55) by 1%, while the U4 line diverges by 1.62%. The price is in this zone very rarely, and never for long.<\/p>\n<p>Given the national holiday in the US today and the lack of economic events in Europe, my forecast for today is looking downwards. If Friday\u2019s movements are in one direction, I predict Monday\u2019s movements to go against Friday\u2019s, without giving any consideration to the news.<\/p><div id=\"inves-248487641\" 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>In Asia, buyers have shifted the maximum to 1.2240. Having exited the wave structure, it\u2019s time for a correction on the euro. The 45<sup>th<\/sup>\u00a0and 67<sup>th<\/sup>\u00a0degrees have been shifted to 1.2185 and 1.2157 respectively.<\/p>\n<p>I\u2019m well aware that as long as there are a lot of willing buyers for the dollar, the major players will be trying to push the euro up in order to change sellers\u2019 minds and induce a reversal. When they start to believe that the euro is on the rise and start reversing their positions, the major players will abandon the euro to induce another reversal on our pair. 84% of open positions on the EURUSD pair at the moment are short.<\/p>\n<p>On the current hour, the trend line runs through 1.2157. If we project this line into the future, then in the case of a decline, the price should meet this line at 1.2187 at 15:00 (GMT+3). I\u2019m planning to take profit on the correction to the LB line.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: pair is overbought<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Friday the 15th\u00a0of January, trading on the euro closed up. After a breakout of the 1.2090 resistance, the single currency surged against the dollar to reach 1.2219. This rally was initially brought about by reports of progress being made in coalition talks in Germany. It was later revealed that [&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-119623","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/119623","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=119623"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/119623\/revisions"}],"predecessor-version":[{"id":119626,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/119623\/revisions\/119626"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=119623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=119623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=119623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}