{"id":120015,"date":"2018-01-19T06:50:23","date_gmt":"2018-01-19T11:50:23","guid":{"rendered":"http:\/\/countingpips.com\/?p=120015"},"modified":"2018-06-01T15:43:52","modified_gmt":"2018-06-01T15:43:52","slug":"eurusd-euro-bulls-have-recovered-85-of-their-losses","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/01\/eurusd-euro-bulls-have-recovered-85-of-their-losses\/","title":{"rendered":"EURUSD: euro bulls have recovered 85% of their losses"},"content":{"rendered":"<div id=\"inves-4095596603\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">January 19, 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 Thursday the 18<sup>th<\/sup>\u00a0of January, trading on the EURUSD pair closed up. The pair started rising during the Asian session and gathered pace during trading in Europe. This rise was initially interpreted by traders as correcting the drop from 1.2288 to 1.2165. After taking 1.2220 (45 degrees), growth on the pair sped up to reach 1.2265.<\/p>\n<p>Traders sold off the dollar in anticipation of a potential government shutdown as well as due to the publication of mixed US data. Growth in the number of housing starts in the US slowed down in December, while the Philly Fed manufacturing index came out lower than expected.<\/p>\n<p>It was later revealed that Republican lawmakers voted to extend government funding to the 16<sup>th<\/sup>\u00a0of February, so fears of a government shutdown have been put to rest for the time being.<\/p>\n<p><strong>US data:<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>Initial jobless claims (13 Jan) \u2013 220,000 (forecast: 252,000, previous: 261,000).<\/li>\n<li>Housing starts (Dec) \u2013 1.192m (forecast: 1.275m, previous: 1.299m).<\/li>\n<li>Building permits (Dec) \u2013 1.302m (forecast: 1.290m, previous: 1.303m).<\/li>\n<li>Philadelphia Fed manufacturing survey (Jan) \u2013 22.2 (forecast: 24.5, previous: 27.9).<\/li>\n<\/ul>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p><div id=\"inves-916233261\" 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>10:00 Germany: PPI (Dec).<\/li>\n<li>11:15 Switzerland: producer and import prices (Dec).<\/li>\n<li>12:00 Eurozone: current account (Nov).<\/li>\n<li>12:30 UK: retail sales (Dec).<\/li>\n<li>16:30 Canada: Canadian portfolio investment in foreign securities (Sep), foreign portfolio investment in Canadian securities (Nov), manufacturing shipments (Nov).<\/li>\n<li>18:00 USA: Michigan consumer sentiment index (Jan).<\/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_190118.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1 EURUSD hourly chart. Source: TradingView<\/p>\n<p>My expectations for Thursday of a rebound from the 45<sup>th<\/sup>\u00a0and 67<sup>th<\/sup>\u00a0degrees didn\u2019t come to pass. The mixed US statistics as well as fears of a government shutdown helped buyers recover 85% of the drop from 1.2288 to 1.2165 if we include today\u2019s Asian session. The fundamentals turned out stronger than the technicals.<\/p>\n<p>Upon reaching 1.2265, the price technically rebounded from the DTR1 trend line, but met with some resistance during its decline at the LB balance line at 1.2220. Buyers successfully defended this level and today, in Asia, the euro has renewed yesterday\u2019s high of 1.2270.<\/p>\n<p>The euro appreciated on the back of a declining dollar, supported by the crosses. I\u2019ve adjusted the DTR1 line a few times after some false breakouts, but now that it\u2019s actually been broken through, I\u2019m turning my attention towards DTR2.<\/p>\n<p>I lost sight of the A-A channel yesterday. It\u2019s formed from three values: L 1.2195, L 1.2165, and H 1.2323. We need this channel to help us see up to which level we could see quotes rise in the event of a breakout of the DTR1 line. On the current bar, it runs through 1.2275.<\/p>\n<p>The prospect of a US government shutdown has been sidelined for the time being. US 10Y bond yields are rising every day. Considering that I have two open short positions on the euro from the 45<sup>th<\/sup>\u00a0and 67<sup>th<\/sup>degrees, I\u2019m going to keep waiting for the pair to break down the lower boundary of the B-B channel. I may be wrong, but my pricing model on the hourly chart doesn\u2019t look promising for the euro\u2019s growth prospects. The euro is being propped up by the crosses, which is why we haven\u2019t seen a decline on our main pair.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: euro bulls have recovered 85% of their losses<\/a>&#8220;<\/div>\n<div><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Thursday the 18th\u00a0of January, trading on the EURUSD pair closed up. The pair started rising during the Asian session and gathered pace during trading in Europe. This rise was initially interpreted by traders as correcting the drop from 1.2288 to 1.2165. After taking 1.2220 (45 degrees), growth on the [&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-120015","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120015","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=120015"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120015\/revisions"}],"predecessor-version":[{"id":120016,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120015\/revisions\/120016"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=120015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=120015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=120015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}