{"id":119773,"date":"2018-01-18T07:45:46","date_gmt":"2018-01-18T12:45:46","guid":{"rendered":"http:\/\/countingpips.com\/?p=119773"},"modified":"2018-06-01T15:46:42","modified_gmt":"2018-06-01T15:46:42","slug":"eurusd-the-pair-has-entered-a-correctional-phase-on-the-daily-timeframe","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/01\/eurusd-the-pair-has-entered-a-correctional-phase-on-the-daily-timeframe\/","title":{"rendered":"EURUSD: the pair has entered a correctional phase on the daily timeframe"},"content":{"rendered":"<div id=\"inves-2121410760\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">January 18, 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>On Wednesday the 17<sup>th<\/sup>\u00a0of January, trading on the euro\/dollar pair closed down. The euro dropped against the dollar from 1.2323 to 1.2177. This decline was catalysed by a jump in US 10Y bond yields as well as an upwards correction on the dollar. US bonds jumped from 2.53% to 2.58%.<\/p>\n<p>Statements from two ECB officials put some downwards pressure on the euro. Both Villeory and Const\u00e2ncio voiced concerns over the euro\u2019s rally, saying that it\u2019s a source of uncertainty given that this movement goes against the fundamentals. Const\u00e2ncio added that the ECB\u2019s monetary policy could remain loose for the long term.<\/p>\n<p>The upswing to 1.2288 was brought about by the Bank of Canada. The central bank increased its key rate by 25 base points to 1.25%. Governor Steven Poloz said that the banks decisions depend on current economic decisions. After this news, the euro slipped to 1.2165 (-123 pips).<\/p>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>10:00 China: GDP (Q4).<\/li>\n<li>16:30 USA: initial jobless claims (12 Jan), building permits (Dec), housing starts (Dec), Philadelphia Fed manufacturing survey (Jan).<\/li>\n<li>17:30 Eurozone: ECB C\u0153ur\u00e9 Speech.<\/li>\n<li>19:00 USA: EIA crude oil stocks change (12 Jan).<\/li>\n<\/ul>\n<p align=\"center\"><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/Analytics\/2018\/01\/eur_180118.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD hourly chart. Source: TradingView<\/p>\n<p>The main target was reached very quickly. The pair dropped without hindrance to 1.2196, followed by an upwards rebound to 1.2288 and the beginning of a head &amp; shoulders model. I don\u2019t think this model will complete its formation today though, as I\u2019m not expecting the price to reverse once the neckline is broken through. In Asia, the euro is trading above 1.22. The range of 1.2188 \u2013 1.2195 that I\u2019ve highlighted has already lost its relevance.<\/p><div id=\"inves-2850245719\" 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>So, what can we expect today?<\/p>\n<p>Hourly cycles are signalling a continued decline for the euro. The daily candlestick for 17\/01\/18 is also suggestive of a declining euro. Moreover, it has both a long body and wick. The euro\u2019s decline stopped at the 90<sup>th<\/sup>\u00a0degree despite the reversal zone being between the 112<sup>th<\/sup>\u00a0and 135<sup>th<\/sup>\u00a0degrees.<\/p>\n<p>The trend line extended from 1.2323 runs through 1.2248, where the 67<sup>th<\/sup>\u00a0degree currently sits. My forecast is expecting a drop to the 45<sup>th<\/sup>\u00a0degree, but we could see the trend line being tested. How can one enter the market given the current situation? To keep risk to a minimum, I\u2019d look at selling from the 45<sup>th<\/sup>\u00a0and 67<sup>th<\/sup>degrees with a stop level above 1.2300, so that the overall risk doesn\u2019t exceed your calculated risk. You could place a stop level above 1.2323, but by increasing the stop, the lot will decrease. The likelihood of the stop will decrease, but so will the level of profit should there be a positive outcome.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: the pair has entered a correctional phase on the daily timeframe<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari On Wednesday the 17th\u00a0of January, trading on the euro\/dollar pair closed down. The euro dropped against the dollar from 1.2323 to 1.2177. This decline was catalysed by a jump in US 10Y bond yields as well as an upwards correction on the dollar. US bonds jumped from 2.53% to 2.58%. Statements [&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-119773","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/119773","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=119773"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/119773\/revisions"}],"predecessor-version":[{"id":119774,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/119773\/revisions\/119774"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=119773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=119773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=119773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}