{"id":120227,"date":"2018-01-23T07:25:45","date_gmt":"2018-01-23T12:25:45","guid":{"rendered":"http:\/\/countingpips.com\/?p=120227"},"modified":"2018-06-01T15:43:50","modified_gmt":"2018-06-01T15:43:50","slug":"eurusd-triangle-formation","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/01\/eurusd-triangle-formation\/","title":{"rendered":"EURUSD: triangle formation"},"content":{"rendered":"<div id=\"inves-2923843379\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">January 23, 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 22<sup>nd<\/sup>\u00a0of January, trading on the euro closed slightly down against its opening price, and slightly up against Friday\u2019s closing price. It was a very volatile day. I still can\u2019t figure out why the market fluctuated so much and what traders were reacting to throughout the day.<\/p>\n<p>Trading on the euro opened at 1.2270 after which sellers closed the gap, correcting the rate to 1.2214. In Europe, the euro restored to 1.2267 before returning to 1.2224. Buyers came into play once again before the end of the day, pushing the price up to 1.2258. In the end it came to 4 separate impulses in one trading day.<\/p>\n<p>The euro received a boost from two news items. The first piece of news was the report from Germany that some significant progress had been made towards forming a coalition government. The second was the news of the US government shutdown over the weekend.<\/p>\n<p>Last night, the Senate voted to extend government funding, bringing the shutdown to an end.<\/p>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p><div id=\"inves-4258910961\" 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>12:30 UK: public sector net borrowing (Dec).<\/li>\n<li>13:00 Germany: ZEW survey \u2013 economic sentiment (Jan).<\/li>\n<li>14:00 UK: CBI industrial trend survey \u2013 orders (Jan).<\/li>\n<li>18:00 Eurozone: consumer confidence (Jan).<\/li>\n<li>18:00 USA: Richmond Fed manufacturing index (Jan).<\/li>\n<\/ul>\n<p align=\"center\"><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/Analytics\/2018\/01\/eur_230118.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD hourly chart. Source: TradingView<\/p>\n<p>Due to fundamental factors, trading on Monday was very volatile. My expectations of a decline for the euro didn\u2019t come to pass. At the time of writing this review, the euro is trading at 1.2269 around the balance line (sma 55).<\/p>\n<p>I\u2019m not going to make a prediction for today, although I expect the euro, on the whole, to decline over the next few days. The only thing I\u2019ll say is that it\u2019s possible that short positions won\u2019t survive for long enough to see the drop.<\/p>\n<p>From the top of 1.2323, a triangle has formed. The waves aren\u2019t ideal, but you could fit them into an a-b-c-d-e pattern. It could also turn into a narrowing triangle, in which case the price will exit downwards below 1.22.<\/p>\n<p>The US House of Representatives has taken a short-term measure to keep the government funded until the 8<sup>th<\/sup>\u00a0of February. Nevertheless, the dollar is in no hurry to appreciate. At the moment, it\u2019s trading up against a lot of the majors.<\/p>\n<p>The euro crosses, except for EURJPY, are providing support to euro bulls during today\u2019s Asian session. There\u2019s one thing bothering me about this situation. Buyers aren\u2019t afraid of the upcoming ECB meeting and Mario Draghi\u2019s subsequent press conference. Either they know something about Mario\u2019s speech that we don\u2019t, or they\u2019re simply confident of the greenback\u2019s further decline.<\/p>\n<p>Last week, it was reported both by Reuters and Bloomberg that there wouldn\u2019t be any changes to monetary policy at the ECB meeting on the 25<sup>th<\/sup>\u00a0of January. Officials aren\u2019t particularly fazed by the euro\u2019s current upwards trajectory, but this does bring some ambiguity into the equation. Traders will once again be looking out for hints in Draghi\u2019s rhetoric as to whether the bank\u2019s stimulus programs could be curtailed.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">EURUSD: triangle formation<\/a>&#8220;<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari Previous: On Monday the 22nd\u00a0of January, trading on the euro closed slightly down against its opening price, and slightly up against Friday\u2019s closing price. It was a very volatile day. I still can\u2019t figure out why the market fluctuated so much and what traders were reacting to throughout the day. Trading [&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-120227","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120227","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=120227"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120227\/revisions"}],"predecessor-version":[{"id":120232,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120227\/revisions\/120232"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=120227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=120227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=120227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}