{"id":119683,"date":"2018-01-16T07:27:29","date_gmt":"2018-01-16T12:27:29","guid":{"rendered":"http:\/\/countingpips.com\/?p=119683"},"modified":"2018-06-01T15:46:43","modified_gmt":"2018-06-01T15:46:43","slug":"eurusd-increased-risk-of-a-trend-line-breakout","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/01\/eurusd-increased-risk-of-a-trend-line-breakout\/","title":{"rendered":"EURUSD: increased risk of a trend line breakout"},"content":{"rendered":"<div id=\"inves-1781229254\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">January 16, 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 Monday the 15<sup>th<\/sup>\u00a0of January, trading on the euro closed up. The euro jumped to 1.2297 on the back of a declining US dollar as well as remarks from ECB governing council member Ardo Hansson.<\/p>\n<p>Hansson said that the ECB should be able to end its asset purchasing program in one swoop without any problems and that a strengthening euro is not a threat to inflation. But that\u2019s not all. He also believes that the regulator should raise interest rates a few times before shrinking its balance sheet.<\/p>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>10:00 Germany: CPI (Dec).<\/li>\n<li>12:30 UK: CPI (Dec), PPI input (Dec), PPI output (Dec).<\/li>\n<li>16:30 USA: NY Empire State manufacturing index (Dec).<\/li>\n<\/ul>\n<p align=\"center\"><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/Analytics\/2018\/01\/eur_160118.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD rate hourly chart. Source: TradingView<\/p>\n<p>Monday against Friday didn\u2019t work out. The euro bulls were relying on fundamental factors yesterday. During trading in Europe, the euro kissed the U4 MA line. From 1.2297, a downwards correction began. Continuing into the Asian session, the euro dropped to 1.2248.<\/p>\n<p>At the time of writing, the euro is trading at 1.2266. The price has moved out of overbought territory and is currently perched on the trend line. The correction has been going for 19 hours now. Since hourly cycles point towards a declining euro, I\u2019m expecting it to meet with the LB balance line. I won\u2019t consider buying any euros until the price returns to the balance line.<\/p>\n<p>I\u2019ve made a future projection of the LB line. Interestingly, it meets with the 67<sup>th<\/sup>\u00a0degree at 1.2214. This is a great opportunity for sellers to bring the price down at least as far as the 67<sup>th<\/sup>\u00a0degree. If the bigger timeframes begin to unload, we could see this go even further.<\/p>\n<p>For the moment, concentrate on the 45<sup>th<\/sup>\u00a0and 67<sup>th<\/sup>\u00a0degrees and then we\u2019ll see how the crosses and majors are doing.<\/p>\n<\/div>\n<p><strong>Source:\u00a0<a href=\"https:\/\/alpari.com\/en\/analytics\/reviews\/market_sessions\/24003_16012018\/\" target=\"_blank\" rel=\"noopener\">EURUSD: increased risk of a trend line breakout<\/a><\/strong><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Monday the 15th\u00a0of January, trading on the euro closed up. The euro jumped to 1.2297 on the back of a declining US dollar as well as remarks from ECB governing council member Ardo Hansson. Hansson said that the ECB should be able to end its asset purchasing program in [&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-119683","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/119683","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=119683"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/119683\/revisions"}],"predecessor-version":[{"id":119685,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/119683\/revisions\/119685"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=119683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=119683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=119683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}